KKR Real Estate Select Trust Announces Tender Offer for 5% of Shares

KKR Real Estate Select Trust Inc. initiates tender offer for 5% of its outstanding shares, aiming to provide liquidity options for its stockholders.

September 13, 2024

KKR Real Estate Select Trust Launches Share Buyback:

KKR Real Estate Select Trust Inc., a non-diversified closed-end management investment company, has announced a tender offer to repurchase up to 2,416,159 of its common stock shares. The offer, representing approximately 5% of the company's outstanding shares, encompasses Class I, Class D, Class S, and Class U shares. The move aims to provide an opportunity for shareholders to sell their holdings at the fund's net asset value as of October 11, 2024, which is also the deadline for the tender offer.

If the offer is extended, the purchase price will be determined based on the net asset value as of the new closing date. The initiative allows stockholders to liquidate some of their shares in a structured process, creating a direct liquidity opportunity.

The company is registered under the Investment Company Act of 1940 and structured as a Maryland corporation. Shares are not traded in any open market, so this tender offer provides a formal mechanism for stockholders to cash out.

Overview of the Tender Offer Process

The process is managed by KKR Registered Advisor LLC, which serves as the investment manager for KKR Real Estate Select Trust. Shareholders who wish to participate need to submit their shares by the closing date of October 11, 2024. There is also a mechanism for withdrawal, which allows stockholders to retract their shares if they decide not to proceed with the sale before the tender offer closes.

Stockholders will be able to sell all or part of their holdings in the fund, with the purchase price calculated based on the net asset value on the closing date. This price reflects the company's actual value, ensuring that shareholders receive fair compensation.

Limited Insider Participation in the Offer

Interestingly, no officers, directors, or affiliates of KKR Real Estate Select Trust intend to tender their shares in this offer. This decision may suggest confidence in the fund's future performance, as these insiders choose to retain their holdings.

Additionally, no third-party consultants or financial advisors are involved in making recommendations or solicitations related to this tender offer. This underscores that the process is an internal transaction designed to benefit existing shareholders.