WASHINGTON (dpa-AFX) - KKR & Co. Inc. (KKR), an investment major, said on Thursday that it has inked a deal with Blackstone Real Estate Income Trust, Inc. or BREIT, for funds managed by KKR to acquire a portfolio of 19 purpose-built student housing properties from BREIT for around $1.64 billion.
KKR is making the investment primarily from its KKR Real Estate Partners Americas III fund.
Over 10,000-bed portfolio is comprised of 19 purpose-built, premium student housing assets anchored to 14 leading four-year public universities across 10 states, the company said.
Upon closing of the transaction, expected to be closed in the third-quarter, the portfolio will be managed by KKR's University Partners, an owner and operator of student housing across the U.S.
Post transaction, University Partners will own and manage over 25,000 beds, representing nearly $4 billion of property value owned by KKR and other investors.
Travis Roberts, CEO of University Partners, said: 'Approximately half of the portfolio is in markets where we have existing operating experience, and this transaction will enable us to expand our presence into a number of attractive new markets. We believe student housing in the top university markets will continue to benefit from strong enrollment growth and structural constraints on new supply.'
BREIT had acquired this portfolio in 2018 in a joint venture with Greystar Real Estate Partners, LLC.
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