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KKR joins Blackstone and limits withdrawals from its real estate fund

Date: May 22, 2024 Time: 17:54:21

The KKR fund has limited the redemptions of its real estate fund KKR Real Estate Select Trust in the last quarter, and has thus joined other operators in the sector such as Blackstone or Starwood, after withdrawal requests exceeded the threshold of 5 %established. In this way, the fund, which manages 1,600 million dollars (1,475 million euros) has fulfilled only 62% of the requests from investors for the quarter that ended on December 1, according to the ‘Financial Times’.

“We are balancing the provision of access to private real estate, which is an illiquid asset class, with the recognition and understanding that the option of a regular level of liquidity is an important feature for Krest shareholders,” the director explained. fund delegate, Billy Butcher. Furthermore, he has emphasized that Krest had liquid assets representing 36% of its overall net assets.

For its part, the US manager Blackstone limited the redemptions of its fund Blackstone Real Estate Income Trust (BREIT) during the month of November to 43% of the requests received, after the redemption demands exceeded 2% of the monthly limit of the value of the net assets and 5% of the quarterly threshold.

In turn, the US fund Starwood, specialized in the real estate sector, also limited the redemptions of its investment fund Starwood Real Estate Income Trust (SREIT) at the end of last year, after the requests for reimbursement from investors exceeded the monthly maximums made by the investment vehicle.

According to a letter sent to financial advisers, SREIT excluded that it had received reward requests equal to 3.2% of NAV (net asset value) in November. Thus, based on the fixed monthly limit of 2%, the fund met 63% of investor redemption requests.

These non-traded real estate mutual funds have monthly and quarterly redemption limits to avoid having to liquidate significant amounts of assets or significantly increase their leverage in response to high withdrawal requests from participants.

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Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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