Square Mile Capital Management LLC (“Square Mile Capital”) today announced that it has provided a $200 million construction facility to affiliates of KKR, a leading global investment firm, to finance the development of industrial properties across the United States. Square Mile Capital provided the facility in partnership with BMO Harris Bank (“BMO”).
Proceeds from the facility are being used to support KKR’s development of four sites, with another four sites in pre-development and additional capacity available. The financing positions KKR to grow its industrial real estate footprint in strategic locations across major metropolitan areas in the U.S., complementing the firm’s existing footprint, which currently includes over 45 million square feet of industrial property.
Square Mile Capital Principal Eric Cohen said, “This facility represents a unique opportunity for us continue to scale our exposure to superior industrial product in a geographically diverse portfolio and to strengthen our long-standing relationship with KKR, one of the nation’s preeminent investment firms and owners of industrial real estate. We’re excited to provide this facility alongside BMO, who has quickly become a trusted partner of Square Mile in the construction lending space.”
“We are very pleased that we’re able to help the exceptional management team at KKR scale
their industrial platform to the next level with this construction facility,” said Catherine Sierakowski, Managing Director, U.S. Commercial Real Estate, BMO Harris Bank. “We were happy to partner with Square Mile Capital to provide an innovative financial solution, and we look forward to seeing KKR continue to grow their business.”
“We continue to see strong demand for high quality industrial space and our development strategy positions us to meet the market and add attractive, strategically located new supply to our portfolio,” said Ben Brudney, a Director in the Real Estate group at KKR who oversees the firm’s industrial investments in the United States. “We look forward to working together with Square Mile Capital and BMO on our construction facility. This is a bespoke financing solution that enhances our overall industrial platform.”
