KKR and the management team, Drawbridge Realty, have recapitalised the company’s existing portfolio and formed a new independent platform to help grow the business.
With assets under management of approximately USD800 million as of 1 June, 2015, Drawbridge is a real estate investment manager focused on acquiring, developing and managing properties for corporate users with an emphasis on well located, predominately single tenant office, R&D and industrial buildings in markets with secular growth. Drawbridge’s existing portfolio includes approximately three million square feet of real estate in and around the San Francisco Bay Area, San Diego, Salt Lake City, Austin, and Raleigh-Durham’s Research Triangle Park, and the Company intends to expand the platform nationally
With the financial backing of KKR and other investors, including The Townsend Group, a leading global provider of investment advisory and investment solutions for real estate, Drawbridge has access to significant equity capital. The structure of Drawbridge’s equity base enables the Company to be a long-term owner of assets, which is attractive to corporate tenants seeking continuity with a relationship-focused landlord. Drawbridge is operated independently from KKR and The Townsend Group.
Drawbridge is a sophisticated acquirer of short and long-term leased, single tenant buildings, including corporate sale-leasebacks and build-to-suits, and also of currently vacant buildings that lend themselves to repositioning and leasing to single tenants. Since closing the recapitalisation transaction, Drawbridge has continued to grow its asset base through the acquisition of five new properties in San Jose, San Diego, and Raleigh-Durham.
“We are pleased to welcome KKR’s investment to the Drawbridge platform,” says Mark Whiting, Drawbridge’s Co-Founder and CEO. “With the support of KKR, we will work to create value by building an increasingly diversified investment platform.”
“With Drawbridge’s industry leading, vertically integrated real estate capabilities supplemented by access to KKR’s corporate network, we think Drawbridge will be the preferred solutions provider to corporate owners and users of real estate,” said Billy Butcher, Co-Head of KKR Real Estate Acquisitions in the Americas, who is also joining the Drawbridge Board of Directors.
“Townsend is excited to partner with Drawbridge in this new platform and targeted growth phase. We believe the platform brings the specialized, integrated market and property expertise that we seek,” said Rob Davies, Principal, The Townsend Group.
