KKR Real Estate Select Trust disclosed that an adviser affiliate has contributed approximately one-quarter of the shares committed under the fund’s shareholder-priority plan. The September 16 contribution resulted in an estimated NAV of approximately $23.26 per share for each share class, subject to completion of the fund’s formal September 16 valuation.
Under the original plan, KREST Adviser Affiliates LLC agreed to retain approximately 7.7 million Class I shares through June 1, 2027, and contribute shares if necessary to support a $27 NAV on that date. The shares were valued at approximately $200 million when the commitment was established in June 2024.
The plan was amended September 1 to permit the affiliate to satisfy the commitment in installments before June 2027. Shares contributed early are canceled permanently, reducing the number of outstanding shares. KKR’s remaining obligation continues after adjusting for shares already contributed.
The disclosure accompanied KREST’s latest quarterly tender offer. The fund is offering to repurchase as many as 3.1 million shares, representing approximately 5% of shares outstanding, at the NAV determined October 16. The offer is scheduled to expire at 4 p.m. Eastern Time that day unless extended.
The early contribution provides current NAV support instead of leaving the entire contractual mechanism until June 2027. The filing cautions that the remaining commitment does not guarantee the fund will reach a $27 NAV.
