© Reuters. FILE PHOTO: Trading information for KKR & Co is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., August 23, 2018. REUTERS/Brendan McDermid
By Chibuike Oguh
NEW YORK (Reuters) – Private equity firm KKR & Co (NYSE:) Inc has blocked investors from cashing out of its $1.5 billion non-traded real estate income trust (REIT) after withdrawal requests exceeded pre-set limits, according to a regulatory filing.
KKR is the latest manager of private REITS to limit investor withdrawals following similar curbs at REITs managed by Blackstone (NYSE:) Inc and Starwood Capital.
KKR told investors of its KKR Real Estate Select Trust Inc this week that it received redemption requests greater than 5% of its quarterly net asset value as of the end of December.
As a result, KKR allowed investors to redeem just $79.3 million, which is equivalent to approximately 62% of the total investors’ repurchase requests of about $128 million.
A KKR spokesperson declined to comment.
Investors are increasingly looking to cash out of private REITs amid a growing disparity in their returns and those generated by public REITS.
KKR reported that its REIT generated an 8.32% return as of the end of December compared with the publicly traded Dow Jones U.S. Select REIT Total Return Index, which fell 25.96% over the same period.
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