KR, IGIS and NPS to Acquire Prime Real Estate Asset in Seoul’s Gangnam Business District

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KKR

SEOUL, South Korea–(BUSINESS WIRE)–Oct. 9, 2018– KKR, a leading global investment firm, together with IGIS Asset Management (“IGIS”), the largest real estate fund manager in Korea, announced today that they have made an investment along with the National Pension Service of Korea (“NPS”) to acquire a mixed-use real estate project (the “Asset”) under development in the Gangnam Business District (“GBD”) in Seoul, South Korea. The project, to be purchased from a consortium led by local engineering firm Daor E&C, is expected to cost approximately KRW 2.1 trillion(US$ 1.9 billion) in total, inclusive of purchase price and further costs to complete. Additional terms of the transaction were not disclosed.

This press release features multimedia. View the full release here:https://www.businesswire.com/news/home/20181009006196/en/

The Asset is located in the heart of the GBD at the intersection of Teheran-ro and Eonju-ro on the former Renaissance Hotel site. Currently under construction, the property will primarily consist of prime grade office space, amenity retail space and a five-star hotel, with a gross floor area of 239,188 square meters and net leasable area of 121,707 square meters. A 20-year master lease agreement for the 263-room hotel has been signed with Shinsegae Chosun, an experienced and best-in-class hotel operator.

“We are thrilled to be investing in what we believe will be an iconic property in an excellent location, and to be teaming up with outstanding partners including IGIS and NPS to do so. We look forward to continue building on our global real estate platform by making quality real estate investments in South Korea and throughout Asia Pacific more broadly,” said John Pattar, Member & Head of Real Estate Asia at KKR.

“We are excited to make this investment along with world-class investment firms KKR and NPS. We expect to develop the property not just as the best real estate asset in South Korea, but also as a landmark building in the global real estate market,” said Sock-woo Jung, President of Domestic Investment at IGIS.

KKR’s investment is being funded from KKR Asian Fund III. The investment is KKR’s third real estate investment in South Korea. Previously KKR invested in The-K Twin Towers, a prime office complex located in Seoul’s Central Business District, in June 2014. The-K Twin Towers was sold to Samsung SRA in January 2018 at a record price.

Since 2011, KKR has committed approximately US$ 2 billion in equity and debt across nearly 50 real estate transactions in Asia Pacific markets including South Korea, Australia, China, India, New Zealand and Singapore. The firm has a dedicated team of approximately 20 real estate professionals based in Asia Pacific spanning both the equity and credit strategies.

About KKR

KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic manager partnerships that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

About IGIS

IGIS, the largest integrated real estate investment and asset management firm in Korea, currently manages real estate assets valued at more than KRW 22.6 trillion (US$ 20 billion; gross asset value). In August 2018, the Institutional Real Estate, Inc. (IREI) named IGIS as the fourth largest real estate manager in Asia in terms of assets under management.

Source: KKR

Media
For KKR Asia:
Cara Major, +852-3602-7335
Cara.Major@KKR.com
or
For KKR South Korea:
Gaeun Choi, +82-2-6951-3546 / +82-10-9186-1324
KKR@thesignature.co.kr

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AURELIUS GROUP establishes a Luxembourg-based Real Estate Investment platform

Aurelius Capital

  • Further investment arm with a flexible, operational focus on the real estate sector
  • Experienced team with an interdisciplinary, international network

Luxembourg, October 4, 2018 – With the newly formed AURELIUS Real Estate Opportunities S.à r.l. (AREO) based in Luxembourg, the AURELIUS Group has opened up a new asset class: AREO‘s investment strategy is particularly focused on real estate projects with potential for operational upside, whose value and income situation can be sustainably improved over the long term through active asset management. Reletting as well as densification and repositioning scenarios can be realised by this manage-to-core approach. The flexible investment approach will be applied to residential, office, retail, hotel, nursing care properties as well as parking in major metropolitan areas and fast-growing cities and university towns.

Munich-based AUREPA Management AG will act as advising investment and asset manager in Germany for AURELIUS Real Estate Opportunities. AUREPA Management AG is managed by an experienced team headed up by Managing Partner Hannes Eckstein. Hannes Eckstein has over 15 years experience in the real estate business. Before joining AUREPA Management AG, among other positions he was responsible for building up the commercial investment business of PATRIZIA Immobilien AG since the early 2000´s, and was Managing Partner of a platform for project development, investment and asset management.

Website AURELIUS Real Estate Opportunities

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GCP Hospitality expands its Australia portfolio by acquiring Bell City mixed-use development in Melbourne

Gaw Capital

August 15, 2018, Hong Kong – Real estate private equity firm Gaw Capital Partners announced the acquisition of Bell City mixed-use development for AUD$157 million in Melbourne’s Preston precinct through its funds under management and its hospitality arm, GCP Hospitality.

Bell City, located just 20 minutes from Melbourne Airport and the CBD, consists of two hotels totaling 844 guestrooms under the Mantra and BreakFree brands, a conference complex, commercial tenancies, a 600-space car park and serviced offices.

In response to the growing popularity of community living, GCP Hospitality will work to incorporate a ‘co-living’ concept with vibrant social areas, a co-working hub, a state-of-the-art fitness center, in-vogue restaurants and bars, and an outdoor pool. Moreover, the Group will roll-out its modern student shared accommodation brand: Campus.

Kenneth Gaw, President and Managing Principal of Gaw Capital Partners, said, “We are excited about the opportunities this acquisition presents. In addition to giving us a foothold in the Melbourne market, this major hospitality asset will allow us to effectively roll out multiple concepts within the same project. After this acquisition, we look forward to further expansion opportunities in the Australia market.”

Christophe Vielle, CEO & Co-Founder of GCP Hospitality, said, “We are delighted to expand our footprint in Australia with this new acquisition. The increasing demand for modern community living concepts will allow us to introduce within Bell City an in mode ‘co-living’ concept as well as roll-out our student shared accommodation concept – Campus – which has been successfully launched in Hong Kong and is due to open in Perth’s city center in January 2019.”

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EQT Real Estate acquires Allee Center, a neighborhood shopping center in Leipzig, Germany, from Investa Real Estate

eqt

The EQT Real Estate I fund has acquired Allee Center, a modern shopping center located in a high-density residential area in Grünau, a suburb of Leipzig. The Allee Center was built in 1996 and comprises around 40,000 square meters of rental space.

The center was sold by Investa Real Estate via Colliers International. The transaction represents the fund’s eighth investment to date and third into Germany. Investa Real Estate was advised by Clifford Chance and Drees & Sommer.

‘We’re excited to be an integral part of the rapid growth of Leipzig in general, and Grünau in particular. Together with the center manager ECE, we hope to make an important positive contribution to the further development of the area” says Frank Forster, Director at EQT Partners and advisor to the fund.

EQT Real Estate has been advised by JLL, Ashurst and Arcadis. HSH Nordbank provided the senior acquisition facility for the acquisition of the shopping Center.

Contacts
Frank Forster, Director at EQT Partners, Investment Advisor to EQT Real Estate I, +44 20 8432 5404
Robert Rackind, Partner and Head of EQT Real Estate at EQT Partners and Investment Advisor to EQT Real Estate I, +44 207 430 5555
EQT Press Office, +46 8 506 553 34

About EQT
EQT is a leading alternative investments firm with approximately EUR 50 billion in raised capital across 27 funds. EQT funds have portfolio companies in Europe, Asia and the US with total sales of more than EUR 19 billion and approximately 110,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership. 

More info: www.eqtpartners.com

About EQT Real Estate I
EQT Real Estate I will seek to make direct and indirect controlling investments in real estate assets, portfolios and operating companies that offer significant potential for value creation through repositioning, redevelopment, refurbishment and active management. The investments will typically range between EUR 50 million and EUR 200 million. The fund is advised by an experienced team from EQT Partners, with extensive knowledge of property investment, development and intensive “hands-on” asset management, and with access to the full EQT network, including 10 European offices and more than 250 industrial advisors.

About Investa Real Estate
Investa Real Estate develops and manages real estate in Germany for over 45 years. The company’s focus is in the development of high quality office and administrative buildings, hotels and healthcare real estate. Since 2013, Investa Real Estate has been developing innovative investment models for institutional investors.

 

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CVC Asia Fund IV announces investment in RKE

RKE is a leading toll road operator in China

CVC Capital Partners (“CVC”) is pleased to announce that CVC Asia Fund IV has entered into binding agreements to invest the USD equivalent of HKD 2,000,000,000 (subject to adjustment) of new capital for 25% in RKE International Holdings Limited (“RKE”). RKE is a subsidiary of RKI, a Hong Kong listed property development and infrastructure conglomerate.

RKE is a leading toll road operator in China with a portfolio of five expressways spanning 340km and strategically located in important economic corridors across four provinces.

William Zen, Chairman of RKE, said: “Today is an important milestone in the further development of RKE. CVC Capital Partners is a leading global private equity firm with an outstanding regional network and track record, and we are confident that this partnership will help us further our expansion opportunities in China and across South East Asia.”

Kevin Xu, Managing Director at CVC, added: “RKE is a leading toll road operator with a strong portfolio and good growth prospects. We have great admiration for the chairman William Zen and his vision to grow the company further. We are very excited about the opportunity to work with him to take RKE to the next level”.

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Ardian Real Estate acquires an office complex on Avenue de la Grande Armée in Paris

Ardian

Paris, July 11, 2018 – Ardian, a world-leading private investment house, announces today the completion of the acquisition of an office complex at 46-48 Avenue de la Grande Armée, in Paris. This transaction is in line with Ardian Real Estate’s strategy of investing in real-estate assets with a strong potential for value creation.

The 8,120 square metre post-Haussmann style complex comprises two interconnected buildings of six and eight floors. The property will be refurbished to prime standards through an ambitious program to optimize the working and tenant service areas, in accordance with key environmental certifications. The complex is very well located in the axis between the Central Business District and La Défense, adjacent to the Argentine metro station (line 1).

The building is also located on the edge of Porte Maillot, an area where numerous redevelopment projects are set to be unveiled in the coming years. Transport infrastructure is also being developed there, notably with the construction of line E of the Grand Paris Express rail network and Tramway T3, whose Porte Maillot stop will open in 2022.

This transaction follows the acquisition of Lagardère’s headquarters in Levallois in 2017. In 2018, Ardian Real Estate acquired the historic Europe 1 radio station’s headquarters Rue François 1er and another building, Place Rio de Janeiro, both in the 8th arrondissement.

 

LIST OF PARTIES INVOLVED

Investment manager/ Purchaser: Ardian
Purchaser’s advisors: Victoires Notaires, Linklaters, De Pardieu, Arsène-Taxand, JLL, Orféo
Architect: Franklin Azzi
Seller’s advisors: BlueBird Immobilier

 

ABOUT ARDIAN

Ardian a world-leading private investment house with assets of US$71bn managed or advised in Europe, the Americas and Asia. The company is majority-owned by its employees. It keeps entrepreneurship at its heart and focuses on delivering excellent investment performance to its global investor base.
Through its commitment to shared outcomes for all stakeholders, Ardian’s activities fuel individual, corporate and economic growth around the world.
Holding close its core values of excellence, loyalty and entrepreneurship, Ardian maintains a truly global network, with more than 500 employees working from fourteen offices across Europe (Frankfurt, Jersey, London, Luxembourg, Madrid, Milan, Paris and Zurich), the Americas (New York, San Francisco and Santiago) and Asia (Beijing, Singapore, Tokyo). It manages funds on behalf of around 700 clients through five pillars of investment expertise: Fund of Funds, Direct Funds, Infrastructure, Real Estate and Private Debt.
Follow Ardian on Twitter @Ardian

 

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EQT Real Estate sign lease agreements of 25,000 sqm in Cologne TechnologiePark

eqt

The EQT Real Estate I fund sign lease agreements with two existing tenants in Cologne. The lease represents around 25,000 sqm across three buildings. In the context of this lease, the concerned buildings are to undergo substantial modernization to bring them to a standard in line with today’s and future demands of occupiers.

Both tenants currently occupy space in the TechnologiePark of which they will re-lease 100% and expand into additional vacant space across the park. The EQT Real Estate team continue to work on improving the overall park to create a desirable and sought after office location within western Cologne.

Frank Forster, Director at EQT Partners and advisor to the fund, said: We’re thrilled that we could reach an agreement with one of our key tenants, whose name is closely connected with the city of Cologne to not only extend its presence in the park for the long term, but also to meaningfully enlarge it.

EQT Real Estate I have engaged Rhein Real Immobilien GmbH as their landlord representative and CTP Asset Management Services GmbH for the property management to help manage the office park.

Contacts
Frank Forster, Director at EQT Partners, Investment Advisor to EQT Real Estate I, +44 20 8432 5404

Robert Rackind, Partner and Head of EQT Real Estate at EQT Partners and Investment Advisor to EQT Real Estate I, +44 207 430 5555
EQT Press Office, +46 8 506 553 34

About EQT
EQT is a leading alternative investments firm with approximately EUR 50 billion in raised capital across 27 funds. EQT funds have portfolio companies in Europe, Asia and the US with total sales of more than EUR 19 billion and approximately 110,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.
More info: www.eqtpartners.com

About EQT Real Estate I
EQT Real Estate I will seek to make direct and indirect controlling investments in real estate assets, portfolios and operating companies that offer significant potential for value creation through repositioning, redevelopment, refurbishment and active management. The investments will typically range between EUR 50 million and EUR 200 million. The fund is advised by an experienced team from EQT Partners, with extensive knowledge of property investment, development and intensive “hands-on” asset management, and with access to the full EQT network, including 10 European offices and more than 250 industrial advisors.

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KKR and Parkway Announce Acquisition of 1111 Brickell in Miami, Florida

KKR

MIAMI, June 14, 2018 /PRNewswire/ — KKR and Parkway Property Investments, LLC (“Parkway”) announced today the acquisition of 1111 Brickell, a 30-story, approximately 522,000 square foot Class A office tower in the heart of Miami’s dynamic Brickell submarket. The asset was purchased in a newly-formed joint venture between affiliates of KKR and Parkway. Square Mile Capital Management LLC originated the acquisition financing.

1111 Brickell is a perennial fixture of the Miami skyline and part of the acclaimed mixed-use project which includes the adjacent JW Marriot Hotel on Brickell Avenue. Constructed in 2000, 1111 Brickell features panoramic views of Miami and Biscayne Bay, an expansive lobby and approximately 18,000 square feet of green space.

KKR and Parkway, in partnership with a curated group of renowned local and international designers, intend to complete a comprehensive renovation to transform the building into a modern work environment centered on hospitality, community and wellness.

KKR is funding the investment primarily from KKR Real Estate Partners Americas II.

About KKR
KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, growth equity, energy, infrastructure, real estate and credit, with strategic manager partnerships that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. L.P. (NYSE: KKR), please visit KKR’s website at www.kkr.com. and on Twitter @KKR_Co.

About Parkway
Parkway is a growth oriented, office operator that currently operates approximately 12 million square feet of high-quality office properties located in attractive submarkets in Sacramento, California, Houston, Texas, Jacksonville and Miami, Florida, and North Carolina. Parkway’s mission is to enhance user experience at the properties it operates, add value to its investors, and expand its presence in other sun-belt markets.

About Square Mile
Square Mile Capital Management LLC is an integrated institutional real estate finance and investment management firm based in New York. The firm’s commercial real estate debt platform provides customized capital solutions for real estate assets throughout the United States. Square Mile’s opportunistic platform takes a value-oriented approach to its investment activities, with an emphasis on opportunities to invest in real estate assets or enterprises that are undervalued, complex or under-capitalized.

MEDIA CONTACT:

KKR:
Kristi Huller or Cara Major
212-750-8300
media@kkr.com

Parkway:
A. Noni Holmes-Kidd
Vice President, General Counsel
T:  +1 407 581 3351
nholmes-kidd@pky.com

 

 

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Blackstone Real Estate Partners Asia closes second fund at approximately $7.1B

Blackstone

June 12, 2018 – Blackstone (NYSE:BX) today announced that it has held its final close on its second Asian opportunistic real estate fund, Blackstone Real Estate Partners Asia II (“BREP Asia II”), reaching its hard cap.  Together with commitments from Blackstone and its affiliates, BREP Asia II has approximately $7.1B of capital commitments.

Chris Heady, Blackstone’s Head of Real Estate Asia, said: “We are deeply grateful for the ongoing trust of our limited partners and continue to see exciting opportunities to deploy capital across the region.”

Kathleen McCarthy, Global Co-Head of Blackstone Real Estate, said: “We are eager to build on the success of our first Asia real estate fund and believe we are well-positioned to capitalize on the continued strong growth the region is experiencing.”

Ken Caplan, Global Co-Head of Blackstone Real Estate, added: “The size of this fund – the largest ever dedicated to real estate investing in Asia – gives us flexibility to pursue a range of opportunities and commit capital with speed and scale.”

 

About Blackstone Real Estate

Blackstone is a global leader in real estate investing. Blackstone’s real estate business was founded in 1991 and has approximately $120 billion in investor capital under management.  Its real estate portfolio includes hotel, office, retail, industrial and residential properties in the US, Europe, Asia and Latin America.  It also operates one of the leading real estate finance platforms, including management of the publicly traded Blackstone Mortgage Trust.

 

Contact:

Blackstone
Christine Anderson
+1 212-583-5182
Christine.Anderson@Blackstone.com

 

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EURAZEO Patrimoine Partners with Dazia Capital, a residential project specialist in Madrid ID, Spain

Eurazeo

Paris, May 24, 2018 – Eurazeo Patrimoine, the Eurazeo investment division specializing in real estate asset companies, has signed a partnership with Dazia Capital, a Spanish operator and investor dedicated to the acquisition, renovation and split sale of residential buildings in Madrid and Spain’s other main cities.

The partnership, which consists in a joint venture between Eurazeo Patrimoine and Dazia Capital, named as Dazeo, will cover a three-year equity investment program of €70 million for Eurazeo, involving transactions to be completed in Madrid, Barcelona, Valencia and the Costa del Sol;

An initial and designated acquisition portfolio of €12 million in equity for Dazeo, comprising three buildings in Madrid (Alcala, Santa Engrancia, and Santa Isabela), of which the first, Alcala, has also been signed as of today.

This project will encompass a total of 2,600 m2, including a 23 apartments. Dazia Capital will be responsible for managing the projects on a daily basis, from development to the sale of finished apartments.

The partnership offers an attractive risk-return ratio for Eurazeo Patrimoine, as demand for downtown housing increases in Spain in the midst of an economic recovery. The signature of this joint venture represents an opportunity for Eurazeo Patrimoine to position itself on the Spanish market over the long term and contribute to the country’s residential real estate drive.

Quoting Renaud Haberkorn, Managing Partner of Eurazeo Patrimoine:

“In setting up this joint venture, our goal is to develop a value-added residential investment platform that will strengthen our position on the Spanish market. We are already active in Spain, where we own nine hotels, whose performance underscore the vitality of the recovery, and now we wish to capitalize on the turnaround in residential real estate, where prices have not yet reach their 2008 level. To achieve this, we can rely on the local know-how of our partner Dazia Capital, and a seasoned team of professionals with an impressive track record in project ourcing.”

Daniel Mazin, CEO of Dazia Capital, added:

“By entering into this alliance with Eurazeo, Dazia is accelerating its residential investment program in urban areas and major spanish  tourist centers. Our strategy is based on the significant investment needed to improve existing buildings in major cities or to build new ones and meet the growing demand of the population who wish to return to live in the city centre, held back by the obsolescence of the park. We fully share Eurazeo’s strategic vision and leaning on this prestigious partner and its teams with recognized skills will strongly contribute to the achievement of our objectives.”

About Eurazeo

With a diversified portfolio of approximately €16 billion in assets under management, including €10 billion from third parties, Eurazeo is a leading global investment company with offices in Paris and Luxembourg, New York, Shanghai and Sao Paulo. Its purpose and mission is to identify, accelerate and enhance the transformation potential of the companies in which it invests. The firm covers most private equity segments through its five investment divisions–Eurazeo Capital, Eurazeo Croissance, Eurazeo PME, Eurazeo Patrimoine and Eurazeo Brands – and through three Idinvest business divisions:

Venture Capital, Private Debt and Dedicated Portfolio & Funds.

Its solid institutional and family shareholder base, robust financial structure free of structural debt, and flexible investment horizon enable Eurazeo to support its companies over the long term. As a global long-term shareholder, the firm offers deep sector expertise, a gateway to global markets, and a stable foothold for transformational growth to the companies it supports.

Eurazeo is listed on Euronext Paris.

ISIN: FR0000121121

Bloomberg: RF FP

Reuters: EURA.PA

 

About Dazia Capital

Dazia Capital is a real estate operator in Madrid.

The business strategy is focused on the residential market in urban centres and the best tourist locations in Spain. The firm closed 2017 with a cumulative investment of 185 million euros. This investment has been carried out through the gradual acquisition, over the last three years, of different buildings and floors covering an area of 86,000 square metres and 500 homes located in Madrid and the Costa del Sol.

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