KKR to Invest in Colonie Center

  KKR to Invest in Colonie Center

Business Wire

NEW YORK -- April 09, 2013

KKR today announced that affiliates and clients of KKR, including KKR
Financial Holdings LLC ("KFN") (NYSE: KFN), in partnership with Colonie
Pacific, acquired Colonie Center (“Colonie” or “the Center”). Financial terms
of the transaction were not disclosed.

Colonie is a 1.3 million square foot super-regional mall with over 113 stores
that sit on 91 acres in Albany, New York. The Center, located directly off of
I-87 at the intersection of Wolf Road and Central Avenue where an average of
117,000 vehicles pass daily, benefits from being in a high-traffic area and
within two miles of the University at Albany. The property generates an
estimated $245 million in retail sales, including anchors with specialty
retail stores producing an estimated $400 per square foot.

Anchored by Macy’s, Boscov’s and Sears, the mall features a strong line-up of
national retailers, including Aeropostale, American Eagle, Christmas Tree
Shops, Express, Sephora and Victoria’s Secret. Colonie also has a 13-screen
Regal Cinemas and a Whole Foods that is anticipated to open in 2014.

In 2007, Colonie Center underwent a significant renovation that incorporated a
“lifestyle” retail component and an improved streetscape and attracted
national destination tenants such as L.L. Bean, P.F. Chang’s and Cheesecake
Factory.

KKR and Colonie Pacific, a partnership between Pacific Retail Capital
Partners, Collarmele Partners and Peter Fair (Continuum Partners), plan to
make additional capital investments and will also focus on attracting new
tenants to the market.

Ralph Rosenberg, a Member of KKR and Head of the firm’s Real Estate group,
stated: “Colonie is an institutional-quality asset with tailwinds from a
significant recent renovation. With additional investment and a revamped
leasing strategy, Colonie will be an even more attractive home for current and
prospective retailers in Albany. The transition in ownership will be seamless
for shoppers, and our goal is to make the shopping experience even better than
it is today.”

Colonie is KKR’s third retail real estate investment since 2011 and ninth
overall. KKR’s real estate investment team seeks to partner with real estate
owners, lenders, operators and developers to provide flexible capital to
respond to transaction-specific needs, including the outright purchase or
financing of existing assets or companies and the funding of future
development or acquisition opportunities.

Kirkland & Ellis LLP served as legal Counsel to KKR.

About KKR

Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a leading
global investment firm with $75.5 billion in assets under management as of
December 31, 2012. With offices around the world, KKR manages assets through a
variety of investment funds and accounts covering multiple asset classes. KKR
seeks to create value by bringing operational expertise to its portfolio
companies and through active oversight and monitoring of its investments. KKR
complements its investment expertise and strengthens interactions with
investors through its client relationships and capital markets platform. KKR
is publicly traded on the New York Stock Exchange (NYSE: KKR). For additional
information, please visit KKR's website at www.kkr.com.

About KKR Financial Holdings LLC

KKR Financial Holdings LLC is a specialty finance company with expertise in a
range of asset classes. KFN's core business strategy is to leverage the
proprietary resources of its manager with the objective of generating both
current income and capital appreciation. KFN executes its core business
strategy through its majority-owned subsidiaries. KFN is externally managed by
KKR Financial Advisors LLC, a wholly-owned subsidiary of KKR Asset Management
LLC, which is a wholly-owned subsidiary of Kohlberg Kravis Roberts & Co. L.P.
Additional information regarding KFN is available at http://www.kkr.com.

Contact:

KKR
Kristi Huller, 212-230-9722
Kristi.Huller@kkr.com
 
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