US private equity firm is moving into the German commercial real estate market, partnering with Deutsche Immobilien Chancen Group in a new vehicle.
The German Estate Group (GEG) will be held by the two companies and target the office and retail sectors.
The company will be KKRβs sole route into German real estate, the US firm said.
Ralph Rosenberg, global head of KKR Real Estate, said the platform would give the company greater access to investments in Germany across the risk spectrum.
Based in Frankfurt, GEG will invest in core and opportunistic real estate, including developments.
Ulrich HΓΆller β chief executive at DIC Asset, in which Deutsche Immobilien Chancen has a 33% stake β has been appointed head of the new company.
GEG will invest its own capital as well as third-party money.
Deutsche Immobilien Chancen, backed by investment companies and insurance firms, will transfer its operational business to GEG, which includes 40 staff.
HΓΆller said the company was confident that, with KKR as a partner, it could build a βleading positionβ for GEG in its relevant market segments.
KKR will be represented on GEGβs supervisory board by Johannes Huth, head of KKRβs Europe, Africa and Middle East operation, and Rosenberg.
