KKR, Round Hill Capital and Pulsar Properties announce the sale of their Spanish logistics portfolio joint venture, PULSAR IBERIA LOGISTICS, to P3 Logistics Parks for € 108.3m
LONDON–(COMMERCIAL THREAD) – KKR, a leading global investment firm, and Round Hill Capital (“RHC”), a leading real estate investment, development and asset management firm, and Pulsar Properties, a developer logistics industry, logistics and intermodal infrastructure in Spain, today announced the sale of PULSAR IBERIA LOGISTICS (“the Pulsar portfolio”), the Spanish logistics portfolio joint venture between KKR, RHC and Pulsar Properties, to P3 Logistics Parks, a long-time owner, developer and manager of European logistics properties, for € 108.3m.
The Pulsar portfolio includes approx. 112,000 m² of big box logistics space, spread over five development projects, throughout the Greater Madrid Region (82% of the rental area) and the Barcelona Region (18% of the rental area). The portfolio is fully leased.
KKR, Round Hill Capital and Pulsar Properties formed the joint venture in October 2018 to acquire logistics investments in parts of Spain as part of the expansion of its Southern European logistics platform. The initial portfolio, consisting of four institutional grade development programs, was acquired as a joint venture with RoundHill Capital (“RHC”) from developer Pulsar Properties (“Pulsar”) in 2018. The Pulsar joint venture acquired and integrated Fontanar into the portfolio . in 2020.
The Pulsar portfolio is strategically located in the strong and established logistics markets of Madrid and Barcelona, in areas benefiting from excellent transport connectivity, strong tenant demand, low vacancy rates and supply very limited logistics buildings available and land to be developed.
Seb d’Avanzo, Managing Director of KKR, commented: “We are delighted that P3 Logistics Parks is the new owner of the PULSAR IBERIA LOGISTICS portfolio. “Logistics remains a high priority sector for us in Europe, and we have already made new investments through our second European real estate fund, KKR Real Estate Partners Europe II. ”
Michael Bickford, Founder and CEO of Round Hill Capital, added: “The logistics industry continues to be a key area for Round Hill Capital’s business. This sale demonstrates the effectiveness of Round Hill Capital’s strategy of using our local market expertise across Europe to seek out opportunities that generate attractive returns driven by returns.
Jose Mª Alaña Arrinda, Founder and CEO of Pulsar Properties, said: “We are happy to have participated in this project with KKR and Round Hill Capital. The development of the pulsar portfolio has been a complete success.
KKR’s investment was made through its Real Estate Partners Europe fund, its first dedicated European real estate fund, which closed in June 2016 with $ 739 million in capital commitments.
In July 2021, KKR announced the definitive closure of KKR Real Estate Partners Europe II, a US $ 2.2 billion fund dedicated to value-added and opportunistic real estate investments in Western Europe. As of June 30, 2021, REPE II had already committed more than $ 700 million in capital primarily in logistics and residential investment opportunities, with KKR’s logistics portfolio comprising Etche France and Mirastar Logistics. (Source REPE 1 and REPE 2 Businesswire)
Pulsar Iberia was advised by the real estate team at Freshfields Bruckhaus Deringer.
KKR is a leading global investment firm providing alternative asset management, capital markets and insurance solutions. KKR aims to generate attractive returns on investment by following a patient and disciplined approach to investing, employing world-class people and supporting the growth of its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer pension, life and reinsurance products under the leadership of The Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For more information on KKR & Co. Inc. (NYSE: KKR), please visit the KKR website at www.kkr.com and on Twitter @KKR_Co.
About Round Hill Capital
Round Hill Capital is one of the world’s leading companies specializing in the investment, development and management of real estate assets. Since its inception in 2002, Round Hill Capital has acquired and repositioned for long-term institutional ownership over 135,000 residential units and student housing beds. Round Hill Capital is a responsible asset owner providing housing to a range of occupants, from students to seniors.
Round Hill Capital’s strong industry and local expertise helps the company identify opportunities and selectively invest in the commercial sector and, as part of this program, the company has built and continues to grow its diverse European portfolio of light industry and logistics.
Round Hill Capital has an established history of positive returns and invests in and manages real estate assets on behalf of some of the world’s leading institutions and private investors. Further information on Round Hill Capital is available at: www.roundhillcapital.com.
About the properties of Pulsar
Pulsar Properties and its business group form a group of companies highly specialized in land management, promotion, development and renovation of industrial, logistics and intermodal platforms in Spain.
Their long experience exceeds more than 25 years in the logistics and intermodality sector and has enabled their company to be considered by the sector as one of the main players in the development of this type of asset in Spain. More information on Pulsar Properties is available at: www.pulsarproperties.es