Realty Income and KKR Form Euro-Denominated Joint Venture in Europe
Realty Income Corporation (NYSE: O) has partnered with KKR (NYSE: KKR) to establish a euro-denominated joint venture focused on European net lease real estate. The transaction involves the contribution of a stabilized portfolio from Realty Income, which will retain a 51% ownership stake and management control. In exchange for its 49% equity interest in this new venture, KKR is investing €528 million through capital accounts it advises. The joint venture's initial cap rate stands at 5.9%, post-management fees, with the portfolio spanning four European countries—Spain, Ireland, Poland, and the Netherlands—and featuring a diverse tenant base across multiple industries. The deal supports Realty Income’s strategy to expand its private capital platform beyond U.S. markets while diversifying funding sources. The transaction is expected to close on September 30, 2026, with Lazard and Citi serving as financial advisors for the respective parties.
