NEW YORK (Reuters) – Private equity firm KKR & Co Inc has blocked investors from cashing out of its $1.5 billion non-traded real estate income trust (REIT) after withdrawal requests exceeded pre-set limits, in keeping with a regulatory filing.
KKR is the most recent manager of personal REITS to limit investor withdrawals following similar curbs at REITs managed by Blackstone Inc and Starwood Capital.
KKR told investors of its KKR Real Estate Select Trust Inc this week that it received redemption requests greater than 5% of its quarterly net asset value as of the tip of December.
In consequence, KKR allowed investors to redeem just $79.3 million, which is corresponding to roughly 62% of the entire investors’ repurchase requests of about $128 million.
A KKR spokesperson declined to comment.
Investors are increasingly trying to money out of personal REITs amid a growing disparity of their returns and people generated by public REITS.
KKR reported that its REIT generated an 8.32% return as of the tip of December compared with the publicly traded Dow Jones U.S. Select REIT Total Return Index, which fell 25.96% over the identical period.
(Reporting by Chibuike Oguh in Recent York; Editing by Mark Porter)
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