KKR real estate lender’s woes attract investor Mavik
If the lender sells its loan portfolio for 95%, Mavik expects to earn an internal rate of return of over 30%
Commercial real estate lender KKR Real Estate Finance Trust, managed by KKR & Co, is reportedly planning to sell its loan portfolio at or near book value, according to KREF's CEO Vik Uppal. The firm has been trading at a significant discount to its book value since 2022 due to rising interest rates negatively impacting commercial real estate.
Mavik, an investment firm specializing in distressed commercial real estate, currently holds a 5.4% stake in KREF and believes that the strategic review may lead to a sale or liquidation of the company. If KREF sells its loan portfolio for 95 cents on the dollar, Mavik anticipates an internal rate of return of over 30% on its investment, the company disclosed in a letter to investors on August 18.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
