KKR to acquire 49% stake in Realty Income's European portfolio

KKR has agreed to invest 528 million euros to acquire a 49% stake in a pan-European real estate portfolio owned by Realty Income. The transaction will be structured through a new joint venture, in which Realty Income will retain a 51% majority stake and continue to manage the assets via its European operating platform.

The portfolio consists of 54 properties and 140 units distributed across Spain, Ireland, Poland, and the Netherlands. These assets are tied to net lease contracts and span five key sectors: food, transport services, home improvement, home furnishings/equipment, and automotive components.

The deal is expected to close by September 30, 2026, subject to customary closing conditions. The portfolio carries an initial effective yield of 5.9% after management fees, with estimated annual cash net operating income of 67.7 million euros for the first year. The weighted average remaining lease term is 7.2 years, and 59% of the total base rent is derived from investment-grade tenants.