KKR & Co. has raised $2.2 billion for a new real estate fund that will seek investment opportunities throughout Europe as lockdown measures are eased across the continent.

The private equity firm’s second dedicated property fund has already invested more than $700 million in residential housing and warehouses, two areas that have proved resilient to the pandemic, according to a statement Tuesday. It will also seek to buy hospitality properties hurt by restrictions and build offices fit for the post-Covid workforce.

“We continue to believe that Europe represents an attractive investing environment for real estate,” Ralph Rosenberg, partner and global head of KKR Real Estate, said in the statement.

As economies gradually start reopening, pension funds seeking stable income streams amid low interest rates are looking for buildings with long leases. At the same time, rapid changes in consumption habits have upended parts of the real estate market, creating opportunities for private equity firms that can re-purpose troubled properties into long-term investments.

Read more/Source: Bloomberg