New York PE firm KKR will spend about $196 million to invest in Yorktown Center in partnership with YTC Pacific, as part of its newly-formed dedicated real estate group. Yorktown Center is located just outside of Chicago. Specifics of the deal were not publicized.
CHICAGO, Apr 19, 2012 — Kohlberg Kravis Roberts & Co. L.P. (together with its affiliates, “KKR”), in partnership with YTC Pacific, today announced the closing of an investment in Yorktown Center (“Yorktown” or “the Center”), KKR’s first retail real estate investment in the U.S. by its newly formed dedicated Real Estate group, for approximately $196 million.
Located approximately 20 miles west of downtown Chicago, Yorktown is a 1.5 million square foot super-regional mall with over 150 stores sitting on 130 acres. With over $280 million in annual revenues, the Center has many recognized national retailers, including The Capital Grille Restaurant, Victoria’s Secret, American Eagle Outfitters, Gap, AMC Theatres, Forever 21 and department store chains JC Penney, Carson Pirie Scott, and Von Maur.
“This is an investment in Yorktown and the Lombard community. Through a combination of proactive management, a focus on leasing, cosmetic and other improvements, we aim to add value to the Center with the hope of offering a more pleasant and practical shopping experience for residents,” Ralph Rosenberg, a Member of KKR and Head of the firm’s Real Estate group, said.
YTC Pacific, a partnership between Pacific Retail Capital Partners, Collarmelle Partners and Peter Fair (Continuum Partners), will manage the day-to-day operations of Yorktown and the group is also a co-investor in the transaction. In addition to focusing on optimizing the retail selection, near-term plans include upgrading the lighting, signage, food court and the entrances.
Yorktown has been under private ownership since it opened in 1968. The Center serves an affluent audience of more than 900,000 residents with an average household income of nearly $109,000; more than 10 million shoppers visit the center every year.
KKR’s real estate investment team seeks to partner with real estate owners, lenders, operators and developers to provide flexible capital to respond to transaction-specific needs, including the outright purchase or financing of existing assets or companies and the funding of future development or acquisition opportunities. The team has access to multiple pools of capital and can invest in private and public real estate opportunities.
Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a leading global investment firm with $59.0 billion in assets under management as of December 31, 2011. With offices around the world, KKR manages assets through a variety of investment funds and accounts covering multiple asset classes. KKR seeks to create value by bringing operational expertise to its portfolio companies and through active oversight and monitoring of its investments. KKR complements its investment expertise and strengthens interactions with investors through its client relationships and capital markets platform. KKR is publicly traded on the New York Stock Exchange KKR 0.00% . For additional information, please visit KKR’s website at www.kkr.com .