Realty Income and KKR to Establish Euro-Denominated Joint Venture, Advancing Realty Income's Private Capital Platform
KKR and Realty Income announced a euro-denominated joint venture under which capital accounts advised by KKR will invest €528 million for a 49% equity interest in a stabilized European net lease portfolio, with Realty Income retaining 51% and continuing to manage the assets. The contributed portfolio spans Spain, Ireland, Poland and the Netherlands — 54 properties generating an estimated €67.7 million of year 1 cash net operating income, contributed at a 5.9% initial cap rate after recurring management fees payable to Realty Income.
Key figures
- Deal Value Usd
- €528 million
- Countries
- ["Spain","Ireland","Poland","Netherlands"]
- Expected close
- September 30, 2026
- Portfolio units
- 140
- Initial cap rate
- 5.9%
- Capped irr to kkr
- 6.3%-6.5%
- Year1 cash noi eur
- €67.7 million
- Kkr equity interest
- 49%
- Portfolio properties
- 54
- Initial investment eur
- €528 million
- Contractual growth rate
- 1.6%
- Investment grade rent pct
- 59%
- Realty income equity interest
- 51%
- Weighted avg remaining lease term years
- 7.2
AI analysis
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