KKR in talks for massive warehouse buy

Demand for industrial space is booming as online orders climb

KKR co-founders Henry Kravis And George Roberts (Getty; iStock)
KKR co-founders Henry Kravis And George Roberts (Getty; iStock)

Investment firm KKR & Co. is in talks to buy a portfolio of warehouses valued at more than $800 million, as a surge in e-commerce is driving investor interest in industrial space.

The deal includes about 100 properties in markets like Atlanta, Baltimore, Dallas and Chicago, according to Bloomberg.

Barclays is organizing financing in the form of $700 million in commercial mortgage-backed securities, Bloomberg reported, citing a source with knowledge of the matter.

Barclays and New York–based KKR both declined to comment.

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Interest in warehouses has surged in recent months as investors look to capitalize on an e-commerce sector that has been propelled by the pandemic.

On Wednesday, Stockbridge Capital Group and a partner announced a warehouse deal valued at about $2 billion, according to the Wall Street Journal, marking one of the biggest commercial transactions this year.

KKR’s Roger Morales said in July that the company was taking a bigger bet on logistics.

“We believe that the current environment will lead to continued acceleration of e-commerce penetration, which drives demand for large modern distribution centers like the ones we are acquiring,” he said.

He added: “Logistics real estate represents a growth opportunity as more and more U.S. consumers migrate to shopping online.” [Bloomberg] — Sylvia Varnham O’Regan