Realty Income and KKR to Establish Euro-Denominated Joint Venture, Advancing Realty Income's Private Capital Platform
KKR is investing €528 million for a 49% equity interest in a new euro-denominated joint venture with Realty Income, which is contributing 54 stabilized European net lease properties across Spain, Ireland, Poland and the Netherlands. The deal is priced at a 5.9% initial cap rate after management fees, and Realty Income holds a call option to redeem KKR's stake after year 10 at a price capping KKR's IRR at 6.3%-6.5%. Realty Income retains 51% ownership and continues managing the portfolio, which carries estimated year 1 cash NOI of €67.7 million; the transaction is expected to close September 30, 2026, subject to customary conditions.
Key figures
- Deal Value Usd
- €528 million
- Year1 noi eur
- 67700000
- Expected close
- 2026-09-30
- Portfolio units
- 140
- Capped irr range
- 6.3%-6.5%
- Initial cap rate
- 5.9%
- Kkr equity stake
- 49%
- Portfolio countries
- ["Spain","Ireland","Poland","Netherlands"]
- Portfolio properties
- 54
- Contractual growth rate
- 1.6%
- Investment grade rent pct
- 59%
- Realty income equity stake
- 51%
- Weighted avg lease term years
- 7.2
AI analysis
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