The quarterly restriction of 5% was exceeded during the first quarter public offering period by requests to redeem 8.1% of KKR Real Estate Select Trust’s net asset value, according to a filing on Wednesday. 62% of every shareholder’s request was granted by the trust. As of 12:12 p.m. on Thursday in New York, KKR shares were down 5.7% at $49.98.
In recent months, pressure has increased on real estate investment vehicles under the control of KKR and Blackstone as investors seek more money than the funds’ established ceilings. The U.S. Securities and Exchange Commission inquired about Blackstone Real Estate Income Trust and Starwood Real Estate Income Trust after they announced they would restrict repayments.
“At KREST, we balance giving admittance to private property, which is an illiquid resource class, with the acknowledgement and understanding that the choice of a consistent degree of liquidity is a significant element for investors of KREST,” says Billy Butcher, Leader chief. . of KKR Land Select Trust, he said in the documenting.
KKR said the trust held fluid resources of 36% of net resource esteem as of December 31. Last year, KREST had a net complete return of 8.32% and roughly $947 million in memberships.
To develop, private equity firms like KKR have increased their offerings to retail investors. This is because institutional investors are constrained in how much money they can devote to alternative assets. An inflight-net-worth reach for high-net-worth clients was launched by New York-based KKR last year after it requested regulatory authorization.
However, these real estate trusts’ recent difficulties have brought to light the difficulties in attracting a larger clientele for rather illiquid investments. For its real estate trust, Blackstone recently went to a typical institutional investor, and the University of California contributed $4 billion.