Realty Income and KKR announced a new European net lease joint venture, expanding across several key markets and introducing a fresh pool of long term equity capital dedicated to European net lease real estate assets. The partnership is structured as a long horizon vehicle, with Realty Income holding a 51% stake and retaining control of day to day management. The vehicle is tied to stabilized assets at a 5.9% initial cap rate after fees, with a capped IRR for KKR between 6.3% and 6.5%. The deal is expected to close on 30 September 2026, and the venture carries a 7.2 year weighted average lease term and a 59% investment grade rent mix, with €528m of gross proceeds to be redeployed into new necessity based assets. Realty Income is a US based retail REIT with a market value of about $56.3b.
KKR & Co. Inc.KKR forms a European net lease JV with Realty Income, deploying long-term equity capital into stabilized assets with a capped 6.3-6.5% IRR.
Realty Income Corporation
