KKR & Co. announced Thursday the final close of the New York-based alternatives investment firm's first dedicated Asia-Pacific real estate fund at $1.7 billion.
The KKR Asia Real Estate Partners fund will focus on a "range of sectors, including commercial, industrial and residential properties, and will opportunistically evaluate assets in emerging alternative sectors," according to a KKR news release.
John Pattar, KKR's Hong Kong-based head of Asia-Pacific real estate, in the news release said the region's real estate sector is being fundamentally reshaped by rising domestic consumption, productivity, urbanization and the acceleration of e-commerce.
A Hong Kong-based spokeswoman said KKR launched its Asia Real Estate Partners fund in November 2018, with roughly half of the fund's commitments coming from public pension clients.
The $35.2 billion Texas Permanent School Fund made a commitment of up to $75 million to the fund in February 2019.
The news regarding KKR's first Asia-Pacific real estate fund comes three days after the firm announced the final close of its first Asia-Pacific infrastructure fund at $3.9 billion.
KKR's news release Thursday said the firm has made $1.5 billion in Asia-Pacific real estate investments since it launched its dedicated real estate platform in the region in 2011. The firm currently manages real estate investments of $14 billion globally. The spokeswoman couldn't immediately say what portion of the total is invested in the region.
