KKR and Mirastar, KKR Real Estate’s European industrial and logistics platform, have completed the acquisition of eight UK logistics properties totaling approximately 2.7 million square feet from Ares Real Estate funds. The transaction expands Mirastar’s presence across several established distribution markets in the United Kingdom, including Corby, Doncaster, Stoke-on-Trent, and Milton Keynes. Financial terms were not disclosed.
The acquired portfolio consists of modern logistics properties across the Midlands, Southeast, and North of England. The facilities benefit from their proximity to major population centers and established transportation infrastructure, providing access to important distribution routes and regional markets.
The properties are 100% occupied, with a weighted average lease term to break of nine years across a diversified tenant base. About 60% of the portfolio’s rental income comes from investment-grade tenants or subsidiaries of investment-grade parent companies, providing a stable source of rental revenue.
The portfolio also has sustainability credentials, with properties carrying BREEAM ratings ranging from Very Good to Outstanding. BREEAM is a building sustainability assessment framework that evaluates environmental performance across categories including energy efficiency, resource management, and building design.
The acquisition supports KKR and Mirastar’s strategy to expand their European logistics real estate platform through investments in properties in established distribution markets.
The eight facilities will add scale to Mirastar’s UK operations while providing opportunities to apply its existing asset management and operational capabilities across the portfolio.
Full occupancy, long-term lease commitments, and a diversified tenant base create an existing income stream for the acquired properties.
Their locations across several major UK logistics markets also provide geographic diversification, reducing the portfolio’s concentration in any single distribution hub.
The transaction comes as KKR continues investing in European real estate through its industrial and logistics platform. The firm is pursuing opportunities involving logistics properties that combine existing rental income with potential for long-term value creation.
KKR and Mirastar have identified the UK’s established distribution markets as an important component of their European investment strategy, citing occupier demand and limited supply in key locations.
The acquired properties are positioned to serve businesses requiring access to transportation networks and population centers throughout England.
For Mirastar, the transaction expands its operating footprint and adds another portfolio of income-producing assets to its existing European holdings.
Founded in 2019 by CEO Ekaterina Avdonina and Anthony Butler, Mirastar is a pan-European logistics real estate developer, investor, and asset manager.
The company’s senior real estate professionals are based in London, Paris, Stockholm, and Frankfurt, supporting investment, development, and asset management activities across multiple European markets.
Through Mirastar, KKR currently manages approximately €3.5 billion in assets under management, representing approximately 1.4 million square meters of logistics properties across the United Kingdom, France, Germany, Sweden, Italy, Spain, and the Netherlands.
Mirastar’s team has collectively deployed more than €25 billion in capital and developed or constructed over 4 million square meters of logistics properties across major European markets.
The latest acquisition adds eight fully occupied UK properties to this existing platform, increasing Mirastar’s exposure to established distribution markets and providing additional opportunities for portfolio-level asset management.
KKR’s European real estate strategy is supported by the firm’s broader alternative investment capabilities, which span private equity, credit, real assets, capital markets, and insurance.
Through its real estate investment activities, KKR partners with specialized operating platforms such as Mirastar to identify investment opportunities and manage properties across different geographic markets.
Mirastar will apply its logistics real estate expertise to the acquired portfolio, with a focus on managing the existing properties and pursuing opportunities to generate long-term value.
The transaction was completed with DTRE and DLA Piper serving as advisors to KKR and Mirastar.
KEY QUOTES:
“This portfolio broadens Mirastar’s presence across several important UK logistics markets, adding a high-quality group of assets to our growing European platform. We see clear opportunities to apply Mirastar’s operating capabilities across the portfolio to drive long-term value creation.”
Ekaterina Avdonina, CEO And Co-Founder Of Mirastar
“We continue to see strong fundamentals in UK logistics, underpinned by resilient occupier demand and constrained supply in key markets. With its combination of durable income and meaningful growth potential, this portfolio represents the type of opportunity KKR’s diversified pools of capital are well positioned to pursue.”
Mai-Lan de Marcilly, Co-Head Of European Real Estate Equity At KKR
