Strategic Lease Partners Acquires $780 Million in Net Leased Properties in Q4 2021 for KKR

Posted on 01/25/2022

Strategic Lease Partners (SLP) is a platform launched by KKR to acquire a diversified portfolio of triple-net lease (NNN) real estate. Strategic Lease Partners closed six transactions in the fourth quarter of 2021 for a total of US$ 780 million. SLP is working closely with KKR’s real estate, credit and capital markets teams to underwrite a wide range of mission-critical properties and deliver customized sale-leaseback solutions for a group of high quality corporate and sponsor-backed tenants. The platform is initially targeting to acquire more than $3 billion in assets, primarily capitalized through KKR’s credit and real estate funds.

The six transactions SLP closed last quarter followed the platform’s launch in August 2021 and consisted primarily of mission critical industrial assets, with a focus on sale-leasebacks (SLBs) for private equity-backed companies with durable business models. The transactions ranged in size from under $15 million for an individual property to over $500 million for a portfolio and included both domestic and cross-border portfolios. SLP’s acquisitions comprised 31 individual assets across nearly 5.4 million square feet with a weighted average lease term (WALT) of over 16 years, while over half of the portfolio holds LEED designation.

SLP’s Q4 2021 acquisitions include the following transactions:
A 20-property, multi-state manufacturing and distribution portfolio that is majority LEED certified and leased to a global beverage brand on a long-term basis

A four-building manufacturing portfolio across major Canadian and United States markets leased to a leading North American retail and food services company

An approximately 50,000-square foot, LEED Platinum office building in Connecticut leased to an international investment firm

A four-building manufacturing portfolio across New Jersey, Georgia and Wisconsin leased to a plastics company

An approximately 350,000-square foot distribution facility in Illinois leased to a health and nutrition brand

An approximately 125,000-square foot distribution facility in Tennessee leased to a major wholesale tire distributor

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