KKR, aka Kohlberg Kravis Roberts, has announced the final close of the KKR Opportunistic Real Estate Credit Fund II.

Known also as ROX II, the fund is a strategy for opportunistic investments in senior loans and real estate securities in the US and Western Europe. Closed commitments to the comingled fund and separate accounts pursuing KKR’s Opportunistic Real Estate Credit Strategy total over $850 million, KKR said. 

ROX II is KKR’s “flagship private fund,” it said.

The strategy has freedom to pursue attractive risk-adjusted returns across both loans and securities. Loan originations will focus on first mortgages secured by high-quality properties owned by institutional sponsors and located in major markets within the US and Western Europe. 

“We believe it is a great time to invest real estate credit. The asset class offers attractive absolute and relative returns, underpinned by the opportunity to lend on high-quality, well-located assets at conservative leverage levels on re-set property values,” Matt Salem, partner and head of real estate credit at KKR, said. “We have designed our ROX II strategy with a flexible mandate to participate in what we view as the best risk-adjusted opportunities we see across our platform, with the objective of delivering attractive returns coupled with significant current income and a focus on downside protection.”