(Bloomberg) -- KKR & Co. and Palm Capital Ltd. have become the latest example of investment firms picking up Nordic real estate assets in an industry that was crippled by a sharp jump in borrowing costs last year.
The two private equity firms have agreed to buy a 47,000 square meter (505,900 square feet) warehouse and office property in the greater Copenhagen area from Swedish real estate group Catena AB, according to a statement from KKR on Friday.
The site has an underlying property value of 400 million Danish kroner ($58.4 million), which is in line with its book value, Catena said in a separate statement.
The transaction marks KKR’s second real estate deal in Denmark this year, in addition to other Nordic purchases comprising a Finnish residential portfolio and a last-mile logistics property in Stockholm.
“Industrial and logistic assets remain central to KKR’s overall real estate strategy, particularly given the shortage of supply that has emerged due to the increasing number of industrial to residential conversions,” said Alexander Thams, the head of Nordic real estate at KKR.
(Adds value of property in third paragraph)
©2024 Bloomberg L.P.
