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PR Newswire·

Realty Income and KKR to Establish Euro-Denominated Joint Venture, Advancing Realty Income's Private Capital Platform

OKKR
  • Realty Income & KKR formed a euro-denominated joint venture to own a diversified European net lease portfolio across four markets.
  • KKR invested €528 million to acquire a 49% equity interest, while Realty Income retains 51% ownership & continues portfolio management.
  • The contributed portfolio of 54 properties spans Spain, Ireland, Poland, & the Netherlands with an initial 5.9% cap rate post-fees.
  • The transaction is expected to close on September 30, 2026, subject to customary conditions.
  • Realty Income holds a call option to redeem KKR's equity interest between years 10 & 17, capping KKR's IRR between 6.3% & 6.5%.
  • The portfolio features 140 units, €67.7 million in estimated year-1 NOI, a 7.2-year weighted average lease term, & 59% investment grade exposure.
  • Top tenant industries include Grocery, Transportation Services, Home Improvement, Home Furnishings, & Automotive Parts.
  • Lazard & DLA Piper advised Realty Income, while Citi & Latham & Watkins LLP advised KKR.