Realty Income (NYSE: O) and KKR (NYSE: KKR) formed a joint venture to own a portfolio of European net lease real estate assets.
KKR is acquiring a 49% equity interest in the portfolio. Realty Income will receive approximately €528 million in gross proceeds from the transaction. Realty Income retains a 51% stake and will manage the properties under a long-term agreement.
The portfolio includes stabilized properties across Spain, Ireland, Poland, and other European countries. These assets were contributed at an initial capitalization rate of 5.9%.
Realty Income intends to reinvest the capital into its core business. The transaction is scheduled to close on September 30, 2026. This partnership expands Realty Income’s private capital platform through high-quality European assets.