Latest news with #MattSalem
Business Times
6 days ago
- Business
- Business Times
KKR builds record US$42 billion private real estate loan pipeline
[NEW YORK] KKR has a record volume of commercial-property financings lined up, and expects more deals as property prices reset and other lenders pull back amid market volatility. The investment firm's pipeline has reached an all-time high of US$42 billion, the second such record set this year, according to a Tuesday note by Matt Salem, Joel Traut and Patrick Mattson in KKR's real estate credit group. Higher interest rates have weighed on market prices for many types of real estate for the last few years. Meanwhile, tariff concerns since early April have made it harder for landlords to obtain financing, increasing their demand for private credit. ''Liberation Day' brought an unexpected new set of opportunities,' Salem, Traut, and Mattson said in their note. The volatility pushed whole loan spreads wider and brought single-asset single-borrower commercial mortgage-backed securitisation to a halt as lenders waited for clarity – creating an opportunity to step in with financing alternatives, they wrote. Property loans are generally attractive as their collateral-based cash flows and floating-rate nature make them a hedge against inflation, according to KKR. The firm usually provides loans at a ratio of 60 per cent to 70 per cent of the value of the real estate, which they say provides enough equity cushion to get repaid even if there are losses. Private credit commercial-property loans can offer annual returns in the 12 per cent to 14 per cent range, while also offering less downside risk than equities, added Salem, KKR's head of real estate credit, in an interview. However, he said KKR remains cautious about the potential effects of tariffs and high inflation. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Both could impact gross domestic product or employment, which could pressure property values. Tariffs could weigh on the values of warehouses in Los Angeles, a major US port city, Salem said as an example. 'The biggest risk right now is in the macro,' said Salem. 'Inflation being number one, and then number two, recession risk.' Looking ahead, KKR expects construction activity to stay muted, partly due to higher labour and materials costs in the US and Europe even before tariffs hit. That helps create a favourable supply-demand ratio that will support asset values. Property values have also become more reasonable generally, providing attractive entry points. 'This private real estate credit strategy is really targeting this opportunity set,' Salem said. 'We will be putting in billions of dollars to work over the next few years.' In February, KKR said it raised more than US$850 million for its Opportunistic Real Estate Credit Fund II. The vehicle will back first mortgages secured by high-quality properties in the US and Europe, and also purchase certain tranches of commercial-mortgage backed securities. With the opportunities in the space, KKR has been hiring professionals to help it evaluate more real estate loans, Salem said, declining to give specifics about staffing plans. 'We have been adding to our team, particularly in Europe,' Salem said. BLOOMBERG
Bloomberg
7 days ago
- Business
- Bloomberg
KKR Builds Record $42 Billion Private Real Estate Loan Pipeline
KKR & Co. has a record volume of commercial-property financings lined up, and expects more deals as property prices reset and other lenders pull back amid market volatility. The investment firm's pipeline has reached an all-time high of $42 billion, the second such record set this year, according to a Tuesday note by Matt Salem, Joel Traut and Patrick Mattson in KKR's real estate credit group.
Yahoo
14-02-2025
- Business
- Yahoo
KKR Real Estate Finance Trust Inc. to Present at Citi's 30th Annual Global Property CEO Conference
NEW YORK, February 14, 2025--(BUSINESS WIRE)--KKR Real Estate Finance Trust Inc. ("KREF") (NYSE: KREF) announced today that Matt Salem, Chief Executive Officer, will present at Citi's 30th Annual Global Property CEO Conference on Monday, March 3, 2025, at 11:40AM ET. A live audio webcast of the presentation will be available on the Investor Center section of KREF's website at For those unable to listen to the live audio webcast, a replay will be available on the website shortly after the event. About KKR Real Estate Finance Trust Inc. KKR Real Estate Finance Trust Inc. is a real estate finance company that focuses primarily on originating and acquiring senior loans secured by commercial real estate properties. KREF is externally managed and advised by an affiliate of KKR & Co. Inc. For additional information about KREF, please visit its website at View source version on Contacts Investor Relations: Jack Switala(212) 763-9048kref-ir@ Media: Miles Radcliffe-TrennerTel: (212) 750-8300media@ Sign in to access your portfolio
Yahoo
14-02-2025
- Business
- Yahoo
KKR Raises Over $850 Million for Opportunistic Real Estate Credit Strategy
NEW YORK, February 14, 2025--(BUSINESS WIRE)--KKR, a leading global investment firm, today announced the final close of the KKR Opportunistic Real Estate Credit Fund II ("ROX II"), a strategy dedicated to opportunistic investments in senior loans and real estate securities in the U.S. and Western Europe. Closed commitments to the comingled fund and separate accounts pursuing KKR's Opportunistic Real Estate Credit Strategy total over $850 million. ROX II is KKR's flagship private fund investing across the full breadth of KKR Real Estate Credit's opportunistic capabilities. The strategy has a flexible mandate to pursue attractive risk-adjusted returns across both loans and securities. Loan originations will focus on first mortgages secured by high-quality properties owned by institutional sponsors and located in major markets within the United States and Western Europe. KKR has established a leading franchise over the past decade as a mortgage lender of choice to top sponsors. Securities investments will leverage KKR's position as the largest third-party purchaser of risk retention CMBS B-Pieces, as well as K-Star, KKR's dedicated special servicer.1 "We believe it is a great time to invest real estate credit. The asset class offers attractive absolute and relative returns, underpinned by the opportunity to lend on high-quality, well-located assets at conservative leverage levels on re-set property values," said Matt Salem, Partner and Head of Real Estate Credit at KKR. "We have designed our ROX II strategy with a flexible mandate to participate in what we view as the best risk-adjusted opportunities we see across our platform, with the objective of delivering attractive returns coupled with significant current income and a focus on downside protection." "Our extensive borrower relationships, built over the past decade, have enabled us to continue our disciplined deployment into an attractive market," said Joel Traut, Partner and Head of Originations for Real Estate Credit at KKR. "We believe private capital will play an increasingly important role in the commercial real estate market as loan demand continues to climb, and this positions us very well to deliver attractive risk-adjusted opportunities for our investors." KKR's global real estate business invests thematically in high-quality real estate through a full range of scaled equity and debt strategies. KKR's more than 140 dedicated real estate investment and asset management professionals across 16 offices apply the capabilities and knowledge of KKR's global platform to deliver outcomes for clients and investors. Since 2015, KKR's real estate credit strategy has originated $43.4 billion of loans and invested $14 billion in commercial mortgage-backed securities (CMBS).2 About KKR KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR's insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR's investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR's website at For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group's website at 1 Based on the face amount retained on conduit and SASB CMBS deals from January 1, 2017 – September 30, 2024; Source: Commercial Mortgage Alert (accessed October 2024). 2 As of September 2024 View source version on Contacts Media Miles Radcliffe-Trenner or Lauren McCranie(212) 750-8300media@ Sign in to access your portfolio
