KKR, Realty Income form euro-denominated joint venture with €528 million investment for 49% stake - O News | RalliesKKR, Realty Income form euro-denominated joint venture with €528 million investment for 49% stake
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O• Portfolio economics and closing timeline
- The portfolio contribution implied a 5.9% initial cap rate post recurring management fees; expected year-one cash NOI is EUR 67.7 million.
- Closing is targeted for Sept. 30, 2026.
- Realty Income holds a call option from year 10 to 17 with a capped IRR at 6.3%-6.5%.
Joint venture formed for European net-lease portfolio
- Realty Income formed a euro-denominated joint venture with KKR, extending Realty Income’s private capital strategy into Europe.
- KKR will invest EUR 528 million for a 49% equity stake in a stabilized European net-lease portfolio contributed by Realty Income.
- Realty Income will retain 51% ownership, manage the assets under a long-term agreement, and control day-to-day asset management.
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