KKR, Hines partner for €49m Italy deal

The New York private equity firm strikes its first RE acquisition in Italy via telecom-related assets and teams up with Houston-based Hines in the process

Kohlberg Kravis Roberts (KKR) and Houston’s Hines have teamed up to buy telecom company-related assets in Italy in what amounts to KKR’s first real estate deal in the country.

New York-headquartered KKR is buying the portfolio of five assets in Rome, Monza, Parma, San Remo and Pavia for €49 million alongside the Hines Italia Value Added Fund which is managed by Hines. COIMA, an Italian real estate company founded in 1974 and owned by the Catella family, is also a partner in the deal.

The seller of the 882,000 square foot portfolio is Italian firm Prelios which holds the assets in Tecla Fondo Uffici, a closed ended fund. The assets are standalone buildings fully let to Telecom Italia which include space for telecom equipment and traditional office space.

In a statement, KKR said that since launching a dedicated real estate platform in 2011, it had committed more than $2 billion to 50 real estate transactions in the US, Europe and Asia as of the first quarter of 2015.
Guillaume Cassou, head of European real estate added: “This purchase of five telecom assets in Italy, our first real estate deal in the country, demonstrates KKR's continued commitment to investing in European real estate. The assets' long-term leases and their strategic nature make this an attractive acquisition.”

Manfredi Catella, chief executive officer of Hines Italia SGR who doubles as honorary president of COIMA, said the Italian platform was structured as a “fiduciary investment and operating partner” of domestic and international institutional investors.