Buyout giant KKR backs new $650m industrial fund

Busy Sydney fund manager Centennial Property Group is tapping into the commercial real estate zeitgeist, putting together a $650m vehicle, backed by private equity giant KKR, that will develop up and hold warehouse and logistics sites.

So far, four seed assets have already been secured for a little over $81 million, according to an information memorandum obtained by Street Talk. In line with the fund’s upscaling strategy, when those properties are developed and completed they will be worth more than $204 million.

The KKR crew are on board with the story, joining in with commitments from principals and other global investment partners who have so far contributed $245 million in equity. The fund is aiming to raise $295 million in equity to back the roll-out of what will become a $650 million fund.