Tag Archives: Real estate

Eurazeo signs an agreement to acquire the Johnson Estate in London

Eurazeo

Paris, 3 December 2020

Eurazeo Patrimoine, the real assets division of the Group, has reached an agreement with Derwent London for the acquisition of the Johnson Estate (“the Estate”), an office complex of 4 adjacent buildings – including The Johnson Building – and totaling 194,000 sq ft (18,000 sqm).
The buildings are located in the Farringdon district, an up and coming area for office space especially appealing to tenants from the fast-growing TMT sector. It is only a 4-minute walk from the Farringdon Over- and Underground train station which will soon, with the inauguration of the Elizabeth Line, be part of London’s Crossrail network.

The Estate will be the second investment of the partnership set up with Arax Properties in March 2019 with the acquisition of Euston House, a multi-let office building totaling 119,000 sq ft (11,000 sqm) located in Central London. Eurazeo equity investment commitment amounts to around €80 million. It is 94%-leased, therefore generating day-1 income with a strong rental reversion potential. The partners will actively manage and invest in the asset to fully capture the Estate’s rental potential.
Renaud Haberkorn, Managing Partner of Eurazeo, Head of Eurazeo Patrimoine, said:

“This second acquisition in London reflects our capacity to source opportunities in complex environments and our strong convictions in the London real estate market which we believe offers today very interesting value opportunities. The Johnson Estate features significant upside potential associated with a safety net arising from day-1 income generation and we will endeavor to capture rental reversion in the coming years for this well connected property which is ideally located for companies from the fast-growing TMT sector.”

Giles Morse, Partner of Arax Properties, said:
“Arax Properties is delighted to be undertaking this investment with our partners Eurazeo Patrimoine. As with Euston House, the Johnson Estate offers the joint venture the ability to capture the momentum of a burgeoning submarket with improving infrastructure whilst having excellent downside protection. We look forward to another successful partnership.”

About Eurazeo
Eurazeo is a leading global investment company, with a diversified portfolio of €18.8 billion in assets under management, including €13.3 billion from third parties, invested in over 430 companies. With its considerable private equity, real estate and private debt expertise, Eurazeo accompanies companies of all sizes, supporting their development through the commitment of its nearly 300 professionals and by offering in-depth sector expertise, a gateway to global markets, and a responsible and stable foothold for transformational growth. 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.

Eurazeo has offices in Paris, New York, Sao Paulo, Seoul, Shanghai, Singapore, London, Luxembourg, Frankfurt, Berlin and Madrid.
Eurazeo is listed on Euronext Paris.
ISIN: FR0000121121 – Bloomberg: RF FP – Reuters: EURA.PA
EURAZEO

EURAZEO CONTACTS

PIERRE BERNARDIN
HEAD OF INVESTOR RELATIONS
email: pbernardin@eurazeo.com
Tel: +33 (0)1 44 15 16 76

VIRGINIE CHRISTNACHT
HEAD OF COMMUNICATIONS
mail: vchristnacht@eurazeo.com
Tel:
+33 (0)1 44 15 76 44

PRESS CONTACT

MAITLAND/amo
DAVID STURKEN
mail:
dsturken@maitland.co.uk
Tel: +
44 ( 7990 595 913

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The Real Brokerage Announces Closing of US $20 Million Strategic Investment by Insight Partners

Insight Partners

TORONTO and NEW YORK, Dec. 3, 2020 /PRNewswire/ — The Real Brokerage Inc. (TSXV: REAX) (OTCQX: REAXF) (“Real”) is pleased to announce today the closing of a US $20 million (approximately CDN $26.28 million) equity investment (the “Insight Investment”) by Insight Partners (“Insight Funds” or the “Investors”) through the purchase of preferred equity units (the “Preferred Units”) issued by a newly-formed U.S. subsidiary of Real, REAL PIPE LLC (“REAL PIPE”), which Preferred Units may be exchanged for common shares of the Company (the ” Common Shares”).

On closing, REAL PIPE issued to the Investors a total of 17,286,842 of the Preferred Units at a price of CDN $1.52 per Preferred Unit (along with the Warrants issued by Real described below) for aggregate gross proceeds of US $20 million. The Preferred Units may be exchanged, at any time at the Investors’ option, and at the option of Real on the earlier of: (i) the listing the Common Shares on a nationally recognized stock exchange in the United States (e.g. NASDAQ or NYSE); (ii) Real’ s market capitalization equaling or exceeding US $500 million for a 30-consecutive trading day period; or (iii) immediately prior to a transaction which Real is acquired by a third party on an arms’ length basis (each, a “Forced Exchange Event”), into common shares of Real (“Exchange Shares”) on a one-for-one basis (as may be adjusted from time to time in accordance with the terms of the limited liability company agreement of REAL PIPE). On an as-exchanged basis, the Insight Funds’ holdings of Exchange Shares and Warrant Shares (as defined below) will represent approximately 19.39% of the outstanding Common Shares on a non-diluted basis and 17.94% of the outstanding Common Shares on a fully diluted basis (including in the denominator Common Shares issuable on the exercise of Real stock options and restricted share units currently issued under Real’s stock option plan and restricted share unit plans (respectively), the Warrant Shares and the Exchange Shares). The exchange price of the Preferred Units will be subject to adjustment from time to time in accordance with the terms of the limited liability company agreement of REAL PIPE. The Exchange Shares are free of resale restrictions in Canada but are subject to a four-month hold period imposed by the TSX Venture Exchange (TSXV) in accordance with the policies of the TSXV (the “Exchange Hold Period”).

On closing, in addition to the Preferred Units, Real issued to the Investors a total of 17,286,842 Common Share purchase warrants (each a “Warrant”). Each Warrant will be exercisable by the Investors into one Common Share (each a “Warrant Share”) at a price of CDN $1.90. The Warrants will expire on the date that is five (5) years from the closing, subject to acceleration of the expiry date to the date of a Forced Exchange Event. The Warrants and the Warrant Shares are free of resale restrictions in Canada and are not subject to an Exchange Hold Period.

In connection with the closing of the transaction, Real has increased the size of its board of directors from four (4) directors to five (5) directors and appointed AJ Malhotra, a Vice President of Insight Partners, to the board of directors of Real.

Real and REAL PIPE have also entered into an investor rights agreement with the Investors providing for, among other things, participation rights, certain standstill and transfer restrictions and certain director nomination rights. Real has entered into a registration rights agreement with the Investors providing for, among other things, customary registration rights. Real guaranteed, absolutely and unconditionally, REAL PIPE’s obligations with respect to the Preferred Units (but postponed and subordinated in right of payment to the prior payment of senior indebtedness) pursuant to the terms of a subordinated guarantee agreement entered into with the Investors on closing.

Additional information regarding the Insight Investment and the terms of the Preferred Units and Insight Investment will be included in a material change report to be filed by Real on www.sedar.com, which you are encouraged to read in its entirety This press release is only a summary of certain principal terms of the Insight Investment and is qualified in its entirety by reference to the more detailed information contained in the material change report.

With the additional funding, Real plans to accelerate development of its tech-powered brokerage services for real estate agents and their clients, including building additional services into its turnkey mobile app and opening more geographies.

“We are proud and excited to welcome Insight Partners to Real. Insight has an excellent track record of identifying future market leaders and helping some of the world’s greatest tech companies in their journeys of transforming industries,” said Tamir Poleg, co-founder and CEO of Real. “Insight’s Onsite ScaleUp engine will help us provide unparalleled experience to real estate agents and their clients and expand into new markets. Today is an important milestone for the future of real estate agents across the country.”

“Real leverages best-in-class technology to help real estate agents earn more and build financial security,” said AJ Malhotra, Vice President at Insight Partners. “Our experience and track record in scaling software companies combined with the Real’s tech-driven platform will form a valuable partnership in helping the company continue to expand its agent network, grow its geographic footprint in the U.S., and add additional services to its offering.”

Transaction Advisors

Gowling WLG (Canada) LLP acted as Real’s legal advisor, with U.S. legal support provided by DLA Piper LLP (US). Willkie Farr & Gallagher LLP and Stikeman Elliott LLP acted as legal advisors to Insight Partners.

Early Warning Disclosure

Real’s head office is located at 133 Richmond Street West, Suite 302, Toronto, Ontario, M5H 2L3.

The following private equity fund affiliates of Insight Venture Management, LLC acquired the Preferred Units and the Warrants (and reference to Insight Funds in this section “Early Warning Disclosure” means the following funds): Insight Partners XI, L.P.; Insight Partners (Cayman) XI, L.P.; Insight Partners XI (Co-Investors), L.P.; Insight Partners XI (Co-Investors) (B), L.P.; Insight Partners (Delaware) XI, L.P.; and Insight Partners (EU) XI, S.C.Sp. The address of Insight Funds is c/o Insight Partners, 1114 Avenue of the Americas, Floor 36, New York, NY, 10036.

Insight Funds acquired the Preferred Units and the Warrants for the consideration described in this press release pursuant to a securities subscription agreement entered into on December 2, 2020 among the Insight Funds, Real and REAL PIPE. Immediately prior to the Insight Investment, the Insight Funds and their affiliates had no ownership or control over securities in the capital of Real. Insight Funds will hold the Preferred Shares, the Warrants, and any Common Shares issuable upon the exchange or the exercise of the Preferred Shares or the Warrants, respectively, for investment purposes.

This press release is issued under the early warning provisions of the Canadian securities legislation. An early warning report with additional information in respect of the foregoing matters will be filed and made available www.sedar.com under Real’s profile. To obtain copies of the early warning report, please contact Insight Partners at the details below.

Contact:
Andrew Prodromos, Insight Partners, (212)-931-5239

About Insight

Insight Partners is a leading global venture capital and private equity firm investing in high-growth technology and software ScaleUp companies that are driving transformative change in their industries. Founded in 1995, Insight Partners has invested in more than 400 companies worldwide and has raised through a series of funds more than $30 billion in capital commitments. Insight’s mission is to find, fund, and work successfully with visionary executives, providing them with practical, hands-on software expertise to foster long-term success. Across its people and its portfolio, Insight encourages a culture around a belief that ScaleUp companies and growth create opportunity for all. For more information on Insight and all its investments, visit insightpartners.com or follow Insight on Twitter @insightpartners.

About Real

Real (www.joinreal.com) is a technology-powered real estate brokerage in 21 U.S. states and the District of Columbia. Real is on a mission to make agents’ lives better, creating financial opportunities for agents through higher commission splits, best-in-class technology, revenue sharing and equity incentives.

Contact Information:

For more details, please contact:
The Real Brokerage Inc.
Lynda Radosevich
lynda@joinreal.com
917-922-7020

No Offer or Solicitation

The offer and sale of the securities described herein was made in a transaction not involving a public offering and has not been registered under the U.S. Securities Act of 1933, as amended, any state securities laws or the securities laws of any other jurisdiction. Accordingly, the securities may not be reoffered or resold in the United States absent registration with the U.S. Securities and Exchange Commission or an applicable exemption from such registration requirements.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, nor shall there be any sale of such securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

Forward-looking Information

This press release contains forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information is often, but not always, identified by the use of words such as ” seek”, ” anticipate”, ” believe”, ” plan”, ” estimate”, ” expect”, ” likely” and ” intend” and statements that an event or result ” may”, ” will”, ” should”, ” could” or ” might” occur or be achieved and other similar expressions. These statements reflect management’s current beliefs and are based on information currently available to management as at the date hereof. Forward-looking information in this press release includes, without limiting the foregoing, information relating to a potential Forced Exchange Event.

Forward-looking information is based on assumptions that may prove to be incorrect, including but not limited to Real’s business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. Real considers these assumptions to be reasonable in the circumstances. However, forward-looking information is subject to known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements to differ materially from those expressed or implied in the forward-looking information. These factors should be carefully considered and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, Real cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and Real assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release, and the OTCQX has neither approved nor disapproved the contents of this press release.

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Fairfax announces sale of Riverstone Europe to CVC Strategic Opportunities II

02 Dec 2020

OMERS has also agreed to sell all of its interests in RiverStone Europe as part of the transaction

Fairfax Financial Holdings Limited (“Fairfax”) (TSX: FFH and FFH.U) announces that it has entered into a binding agreement with CVC Capital Partners (“CVC”) to sell all of its interests in RiverStone Europe to CVC Strategic Opportunities Fund II. OMERS, the pension plan for Ontario’s municipal employees, has also agreed to sell all of its interests in RiverStone Europe as part of the transaction.

The purchase price to be received by Fairfax on closing of the transaction is approximately US$750 million. Fairfax will also be entitled to receive up to US$235.7 million post-closing under a contingent value instrument. Luke Tanzer will remain the Managing Director of RiverStone Europe and Nick Bentley, the Chief Executive Officer of the RiverStone Group, will remain on the board of RiverStone Europe post-closing.

After closing, RiverStone Europe will also operate under the name RiverStone International and will seek to continue its successful track record of acquisitions and growth led by its existing management team.

“We are very pleased to enter into this transaction with CVC,” said Prem Watsa, Chairman and Chief Executive Officer of Fairfax. “RiverStone Europe is an industry leader in run-off insurance services, and CVC’s scale and vision will give RiverStone Europe, under the continued leadership of Luke and his management team, the opportunity to further grow the business. Nick and Luke are also fully supportive of this transaction, based on their strong beliefs that it was the best way for RiverStone Europe to continue to grow and pursue run-off transactions. We wish Luke and all of the employees at Riverstone Europe much success in the future. Fairfax remains committed to continuing to grow its other European businesses, including its Lloyd’s of London activities.”

“I am extremely happy to partner with CVC in this next chapter of our development,” said Luke Tanzer, Managing Director of RiverStone Europe. “This transaction will provide us with a runway for further growth as we continue to offer the most trusted and effective run-off solutions in the insurance market. We look forward to joining the CVC family and benefitting from their deep experience of financial services, global network and long term pool of capital.”

“As one of the largest global consolidators of non-life run-off insurance books, with a leading position in the UK and Lloyd’s market, embedded cash flows and a predictable financial profile, RiverStone Europe is ideally suited to CVC’s Strategic Opportunities platform, which specializes in backing established businesses in stable markets that have long term growth ambitions,” said Peter Rutland, Managing Partner and Head of Financial Services at CVC. “We have got to know RiverStone and Fairfax over many years, and are delighted to now have the opportunity to work with Luke Tanzer and his experienced team.”

The transaction is subject to customary closing conditions, including various regulatory approvals, and is expected to close in early 2021.

Fairfax is a holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and the associated investment management.

CVC is making this acquisition through Strategic Opportunities Fund II, a vehicle designed to invest in high-quality businesses that are suited to longer hold investment horizons.

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Ardian and Sanofi sign a lease for a substantial office complex located at 46-48 avenue de la Grande Armée in Paris

Ardian

25 November 2020 Real Estate Paris, France

Paris, November 25th, 2020 – Ardian, a world leading private investment house, and French multinational pharma company Sanofi, have agreed on a lease for a post-Haussmann style office complex in Paris. Ardian acquired the office building, located at 46-48 Avenue de la Grande Armée, near Porte Maillot and Place de l’Étoile, in July 2018.

The building, which will cover almost 9,200sqm, comprises two interconnected six- and eight-story buildings. It is a Paris landmark boasting more than a century of history. The project, which is entrusted to Franklin Azzi Architecture, aims to restore the building’s Parisian industrial-era roots from the turn of the 20th century through extensive renovation and modernization – tastefully blending art deco and industrial design.

The project was carefully designed to ensure that it retains authenticity while offering enhanced amenities to create a unique work environment. The building, including the top two terrace floors and distinctive rooftop with emblematic Parisian views, is currently under construction and will be completed in 2022.

Sanofi, with this building as its future world headquarters, intends to offer all its employees a state-of-the-art working environment, to enable greater collaboration between teams, through flexible working facilities.

This choice confirms Sanofi’s commitment to meeting its employees’ changing needs and expectations.

Grande-Armée-Real-Estate

Stéphanie Bensimon, Head of Ardian Real Estate, said: “The lease of the whole building by Sanofi demonstrates Ardian Real Estate’s ability to reinvent office complexes, while preserving their rich heritage.

“While there has been some speculation about the future of offices, this lease is yet another example that high-quality office space remains attractive to large companies. Businesses need to continue to ensure they are offering employees the most suitable conditions to work for the future.”

Jérôme Arnaud, Real Estate Director at Sanofi Group added: “We are delighted to make full use of all the qualities of this completely redesigned and restructured building to offer innovative work spaces that will put a strong emphasis on the fluidity of exchanges and interactions. Our ambition is to make it an unparalleled place to live, work and collaborate.”

Ardian signed the forward-funded sale of the vacant building to institutional investor BNP Paribas Cardif, in May 2019. Ardian had retained the responsibility to market lease agreements related to the building.

This lease follows the recent announcement of the signing of long-term leases on the RIO project, also developed by Ardian Real Estate, in the 8th arrondissement.

LIST OF PARTICIPANTS

  • Ardian

    • Ardian advisors: CBRE, Linklaters, Orfeo

  • Sanofi

    • Sanofi advisors: CBRE Advisory and transaction occupiers, JLL Workplace & Design

ABOUT ARDIAN

Ardian is a world-leading private investment house with assets of US$100bn 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 700 employees working from fifteen 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 and Seoul). It manages funds on behalf of around 1,000 clients through five pillars of investment expertise: Fund of Funds, Direct Funds, Infrastructure, Real Estate and Private Debt. Follow Ardian on Twitter @Ardian

PRESS CONTACTS

ARDIAN – HEADLAND

Gregor Riemann

griemann@headlandconsultancy.com +44 (0)7920 802 627

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KKR Grows Real Estate Industrial Portfolio with Four New Acquisitions in Atlanta

KKR

November 23, 2020

Acquires 1.6 million SF from Four Separate Sellers to Expand KKR’s Industrial Footprint in Atlanta

NEW YORK–(BUSINESS WIRE)– KKR, a leading global investment firm, today announced the acquisition of four industrial distribution properties across the greater Atlanta metropolitan area for an aggregate purchase price of approximately $136 million.

The newly acquired properties consist of three high quality, shallow-bay, last mile distribution properties with an average vintage of 2006. The fourth property is a large, state of the art fulfillment center completed in 2020 which is leased to high quality, investment grade tenant on a long term basis. Together the four properties represent 1.6 million square feet. The properties were acquired from four different sellers.

“These acquisitions are part of our ongoing effort to expand our industrial portfolio across high growth Sunbelt markets,” said Roger Morales, KKR Partner and Head of Commercial Real Estate Acquisitions in the Americas.

“We are excited to increase our footprint in Atlanta, given the markets’ strong supply-demand fundamentals and long-term growth trajectory,” said Ben Brudney, a Director at KKR overseeing the firm’s industrial real estate efforts. “These are important acquisitions for us as we continue to develop and diversify our industrial footprint to include both infill and multi-tenant assets, as well as larger, single tenant fulfilment centers.”

KKR is making the investment in the three smaller properties through its Real Estate Partners Americas Fund II. The fourth property is an investment by KKR’s core plus real estate strategy and the first industrial investment by the core plus real estate strategy in Atlanta.

Across its funds, KKR owns over 18 million square feet of industrial properties in strategic locations in major metropolitan areas across the U.S. Since launching a dedicated real estate platform in 2011, KKR has grown real estate AUM to approximately $14 billion across the U.S., Europe and Asia as of September 30, 2020. The global real estate team consists of over 90 dedicated investment professionals, spanning both the equity and credit businesses.

About KKR

KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, credit and real assets, with strategic partners 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.

Cara Major or Miles Radcliffe-Trenner
212-750-8300
media@kkr.com

Source: KKR

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Blackstone Completes $14.6 Billion Recapitalization of BioMed Realty

Blackstone

New York, November 20, 2020 – Blackstone (NYSE: BX) today announced that Blackstone Real Estate Partners VIII L.P. and co-investors have completed their previously announced transaction to sell BioMed Realty for $14.6 billion to a group led by existing BioMed investors. This transaction is part of a new long-term, perpetual capital, core+ return strategy managed by Blackstone.

Morgan Stanley & Co. LLC served as financial advisor to BREP VIII and completed a “go-shop” process on behalf of BioMed’s selling investors.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Wells Fargo Securities LLC also served as financial advisors to BREP VIII, and Eastdil Secured served as financial advisor to the purchasers. Simpson Thacher & Bartlett LLP served as legal advisor to Blackstone.

The transaction was announced on October 15, 2020.

About Blackstone Real Estate
Blackstone is a global leader in real estate investing. Blackstone’s real estate business was founded in 1991 and has $174 billion of investor capital under management. Blackstone is one of the largest property owners in the world, owning and operating assets across every major geography and sector, including logistics, multifamily and single-family housing, office, hospitality and retail. Our opportunistic funds seek to acquire undermanaged, well-located assets across the world. Blackstone’s Core+ strategy invests in substantially stabilized real estate globally through regional open-ended funds focused on high-quality assets and Blackstone Real Estate Income Trust, Inc. (BREIT), a non-listed REIT that invests in U.S. income-generating assets. Blackstone Real Estate also operates one of the leading global real estate debt businesses, providing comprehensive financing solutions across the capital structure and risk spectrum, including management of Blackstone Mortgage Trust (NYSE: BXMT).

About BioMed Realty
BioMed Realty, a Blackstone portfolio company, is the largest private provider of real estate solutions to the life science and technology industries. BioMed owns and operates high quality life science real estate comprising 11.3 million square feet concentrated in the leading innovation markets throughout the United States and United Kingdom, including Boston/Cambridge, San Francisco, San Diego, Seattle and Cambridge U.K. In addition, BioMed maintains a premier development platform with 2.3 million square feet of Class A properties in active construction to meet the growing demand of the life science industry.

Contact
Ilana Mouritzen
Ilana.Mouritzen@Blackstone.com
Tel: (212) 583-5776

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KKR Expands Real Estate Industrial Portfolio in Phoenix with a New Acquisition

KKR

November 20, 2020

Investment Increases Phoenix Industrial Footprint to Nearly Two Million Square Feet

NEW YORK–(BUSINESS WIRE)– KKR, a leading global investment firm, today announced the acquisition of an industrial distribution property in Phoenix for a purchase price of approximately $32 million. The property takes KKR’s industrial footprint in the Phoenix market to nearly two million square feet.

Built in 2001, the asset is a 32-foot clear height, Class A property located in Phoenix’s Southwest Valley. The property was 100% leased at acquisition to a high quality tenant for approximately five and a half years. KKR acquired the asset from Cohen Asset Management and Cushman & Wakefield brokered the transaction.

“This is an important acquisition for us as we continue to develop and diversify our industrial footprint,” said Roger Morales, KKR Partner and Head of Commercial Real Estate Acquisitions in the Americas. “The Phoenix market fundamentals remain highly attractive and we believe the continued acceleration of e-Commerce penetration will drive demand for state of the art distribution centers like this one.”

KKR is making the investment through its Real Estate Partners Americas Fund II.

Across its funds, KKR owns over 16 million square feet of industrial properties in strategic locations across major metropolitan areas in the U.S. Since launching a dedicated real estate platform in 2011, KKR has grown real estate AUM to approximately $14 billion across the U.S., Europe and Asia as of September 30, 2020. The global real estate team consists of over 90 dedicated investment professionals, spanning both the equity and credit businesses.

About KKR

KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, credit and real assets, with strategic partners 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.

Media:
Cara Major or Miles Radcliffe-Trenner
212-750-8300
media@kkr.com

Source: KKR

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Bain Capital Real Estate and Magnolia Capital Form Joint Venture to Invest in Multifamily Housing

BainCapital

November 16, 2020

BOSTON, MA and CHICAGO, IL, November 16, 2020 – Bain Capital Real Estate and Magnolia Capital today announced the formation of a joint venture to pursue opportunities to acquire, renovate and operate value-added multifamily housing in primary and secondary markets throughout the U.S.  The joint venture launches with the objective of deploying $900 million of gross capital over the next several years.

Bain Capital Real Estate and Magnolia Capital will initially focus on acquisitions in compelling Sunbelt markets, with a plan to purchase multifamily properties that have a “value-add” component, including executing capital upgrades to unit interiors, building exteriors and amenity spaces, and improving property operations through proactive asset and property management strategies.  The venture will target well located, garden-style properties constructed between 1975-2000 with a rent profile that serves a middle income demographic.

“We believe this is a compelling opportunity to invest in markets where employment is expanding and at a time when multifamily housing in established neighborhoods continues to present attractive underlying fundamentals,” said Kavindi Wickremage, a Managing Director at Bain Capital Real Estate.  “Our partnership with Magnolia Capital is rooted in our thesis that there is a long-term need for middle income housing, particularly in growing U.S. markets where housing affordability continues to worsen. We look forward to a productive and lasting partnership as we seek to increase the availability of housing that features compelling amenities at affordable price points.”

“Bain Capital Real Estate has a long-standing reputation as a thoughtful, value add investor which shares our conviction for the multifamily housing space,” said Maxwell Peek, Founder, CEO & Managing Principal at Magnolia Capital.  “We are excited to join forces as we launch this well-capitalized and differentiated partnership.  Magnolia Capital has built an institutional, data driven investment platform with extensive multifamily expertise.  We are appreciative of the opportunity to partner with Bain Capital Real Estate, and together look forward to executing on our investment strategy to acquire and operate institutional-quality multifamily housing in demand-driven growth markets throughout the U.S.”

Incubation Capital Partners advised the parties to this venture with capital placement services.
About Bain Capital Real Estate
Bain Capital Real Estate was formed in 2018 and pursues investments in often hard-to-access sectors underpinned by enduring secular trends that drive long-term demand growth for real estate assets and services.  The Bain Capital Real Estate team has been executing its strategy since 2010 (formerly as a part of Harvard Management Company), having invested over $4 billion of equity in over 400 assets across multiple sectors.  Bain Capital Real Estate focuses on small to mid-sized assets where the team applies its deep industry expertise to accelerate impact and drive operational improvements. Bain Capital Real Estate’s strategy aligns with the value-added investment approach that Bain Capital pioneered and leverages the firm’s global platform and significant experience across asset classes to further bolster its insights and sourcing capabilities.

About Magnolia Capital Group 
Magnolia Capital is a vertically integrated real estate investment firm focused on identifying and creating value within the multifamily investment space.  The company’s founding principals have a distinctive blend of institutional real estate investment experience combined with a deep knowledge of technology and operational efficiencies.  Magnolia currently manages over $1.8 billion of real estate, representing 6,600+ units in fourteen markets across the United States.  For more information please visit www.magnoliacap.com.

Media Contacts

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Innovestor invests in Linear – Digitalizing the real estate business

Innovestor

Linear, a Finnish startup focusing on the digitalization of real estate brokerage, has closed €1.1 million in seed funding. The round was led by Innovestor Ventures, joined by institutional and private investors as well as the company’s previous backer, Superhero Capital. Linear will use the latest funding round on future growth and expansion to new markets.

Linear Oy, founded in 2018, offers a digital ecosystem that is driven by artificial intelligence and machine learning to facilitate the housing trade. The services benefit both private sellers and professional realtors.

Linear offers realtors a comprehensive SaaS (Software as a Service) automation tool for managing the sales process and acquiring new customers. Furthermore, realtors have access to a wide range of digital marketing tools, such as virtual apartment tours and virtual interior designs. Realtors can use Linear to minimize the amount of manual work, allowing them to focus solely on the sales process. This increases the annual sales capacity of realtors significantly.

To date, Linear has over 600 registered realtors as customers from the majority of Finland’s largest realtor agencies, including Remax, Kiinteistömaailma and Bo LKV.

For private home sellers, Linear provides an integrated platform (named Dixu) with all the necessary tools to sell homes independently. For a flat fee, private sellers get AI-driven pricing suggestions, support in preparing legal documents, marketing materials and a sample of the most efficient realtors in their own area, if they decide to turn to professional sales support.

The development of the real estate sector has recently focused heavily on digital services and concepts that facilitate the sale of a house listing without a realtor. Miro Eriksson, CEO at Linear, believes realtors will continue to play an important role in the real estate selling process.

“While many choose to sell their homes independently, from consumer to consumer, we think that realtors continue to have a solid position in the market – and we are happy to provide them with a new solution to make their job easier and more efficient. We are proud and humble to successfully close this investment round, giving us confidence to continue developing our products and services”, Eriksson says.

 

“We were able to quickly build conviction around Linear’s ambitious team and their vision for applying tech to develop the home selling market. Moreover, in this market, we believe the Human+Machine approach will be a successful formula. Over a short period of time, the company has validated its offering and is now ready to scale”, says Innovestor’s Wilhelm Lindholm.

 

This was Superhero Capital’s follow-on investment into the company, as the Helsinki-based venture capital firm made their initial investment in Linear’s pre-seed round in 2019.

Although Linear’s platform was launched in 2019, the startup has shown strong growth as their revenue has increased by 14 percent month-over-month during the first half of 2020.

 

In the media 

Suomalainen asuntokaupan nettiapuri keräsi 1,1 miljoonan euron rahoituksen – Idea keksittiin pankissa: ”Olemme myöntäneet miljoonien edestä lainoja ja huomasimme ongelmia” (Talouselämä)

Finnish startup Linear raises €1 million to digitalise real estate but keep realtors in the game (Tech.eu)

 

Contact

Miro Eriksson

CEO, Linear
miro(a)linear.fi
+358 44 5801656

 

Wilhelm Lindholm

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Mouro Capital leads investment in the Spanish proptech Clikalia

Mouro Capital

This is the first investment of Mouro Capital in a Spanish startup

• Clikalia and Santander will work to build a strategic relationship around digital transformation and new businesses.

London/Madrid, 10th November 2020 – PRESS RELEASE

Mouro Capital, the $400 million successor fund to Santander Innoventures, today announced an investment in Clikalia, a Spanish online residential property platform which digitises the buying and selling of houses. The funding represents Clikalia’s Series A, which comes with a new debt facility to help accelerate growth.

Founded in 2017, Clikalia is the leading instant property buyer in Spain and was born with the aim of digitising the real estate sector. The company reduces the time it takes to sell a property significantly, making an offer in just 24 hours and, if accepted, will buy the property in 7 days. Clikalia uses technology and big data to improve and digitise processes, reselling homes within 120 days after making them more sustainable and energy efficient.

Since its inception, Clikalia has carried out more than 500 transactions with a team of 80 people in Madrid and Barcelona, positioning themselves as one of the leading proptechs in Spain. The company has maintained positive margins and has had a positive EBITDA since day one. Clikalia is looking to expand into new cities in the next few months.

Manuel Silva Martínez, General Partner at Mouro Capital, said: “Our aim is to support teams working on the future of financial services and buying a home is one of the most important financial decisions consumers will make in their lifetime. Clikalia is working on changing the housing status quo with a customer-centric vision, so supporting them was an easy decision for us.”

Mouro Capital invest for financial returns, but it also has the objective of, in selected cases, promoting deep and meaningful relationships between Santander, a limited partner in the fund, and its portfolio companies; and Clikalia perfectly meets both criteria. Silva Martínez added: “We are excited at the prospects of helping Clikalia be a very large company following international successes like Opendoor. Moreover, as Santander thinks about its customers’ real estate needs and the financing cycle around it, we believe Clikalia can be a driver for transformation and new business opportunities in Europe and Latin America.”

Manuel will join Clikalia’s board of directors and work together with Alister and his team to make Clikalia’s vision a reality.

Francisco Alister Moreno, Founder and CEO of Clikalia, said: “We are very excited to continue our journey with Manuel and the Mouro Capital team. Combining Mouro Capital and Banco Santander with what we have been building at Clikalia means that we can offer to customers the best of both worlds: a digital experience with the highest quality standards combined with the strength of one of the most important financial institutions in world.”

Pinsent Mason acted as legal advisor to Clikalia.

About Clikalia

Founded in 2017 by Francisco Alister Moreno, Clikalia is transforming the home buying and selling experience by turning a complex, uncertain and slow processes into fast, simple and transparent transactions bringing immediate liquidity. The proptech guarantees sellers an offer on their property as quickly as within 24 hours and if accepted, a sale within 7 days. Clikalia are committed to applying technology to create digital contactless ways to buy and sell homes, bringing its value proposition to a larger number of people as the leader in home buying and selling in Spain. The company has been recognised recently by the European Business Awards, Euronext, E-nnovation Award, Top 100 South Summit and Cepyme.

About Mouro Capital

Mouro Capital is a venture capital firm backing entrepreneurs who are shaping the future of financial services. With $400 million in assets under management and supported by Banco Santander, Mouro invests across the fintech value chain in early to growth stage start-ups across Europe, North America and Latin America. Mouro has invested in over 30 companies such as iZettle (acquired by PayPal), Kabbage (acquired by American Express), Creditas, Curve, Ripple, Tradeshift, Trulioo and Upgrade.

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