KKR Strikes Forward Funding Deal with Swedish Developer Reliwe, Signaling Confidence in Europe’s Build-to-Core Strategy

Global investment powerhouse KKR has signed an exclusive forward funding agreement with Swedish real estate developer Reliwe, in a move that reflects the private equity firm’s growing appetite for core-quality real estate assets across Northern Europe. The deal, valued at over €300 million, will finance the construction and delivery of a portfolio of high-spec logistics and mixed-use developments in Sweden and Finland.

This marks a strategic shift for KKR’s real estate arm, which has been gradually pivoting from opportunistic acquisitions to early-stage partnerships with developers, a model that allows it to lock in attractive yields while mitigating development risks.

What Is Forward Funding?

In traditional real estate investment, institutional capital typically enters once a property is complete and stabilized. Forward funding, however, flips that script. It is a development financing structure in which an investor, like KKR, agrees to fund the construction of a project in advance, effectively acting as a capital partner throughout the build process.

Unlike speculative development funding, where developers assume all the risk, forward funding allows investors to secure long-term assets at a discount, often below market value, in exchange for providing upfront capital. In return, developers receive phased payments to fund construction, while the investor gains control over asset delivery, specifications, and long-term hold potential.

This approach has gained popularity among institutional investors seeking defensive positions in quality assets, especially in the logistics, residential, and life sciences sectors where demand continues to outpace supply.

Why Reliwe and Why Now?

Reliwe, a Stockholm-based developer known for its ESG-conscious designs and advanced logistics hubs, was a natural fit for KKR’s Nordic expansion. The company has a pipeline of urban infill and last-mile logistics sites in key growth corridors, including Gothenburg, Helsinki, and Malmö, markets with chronic undersupply of modern industrial space.

KKR’s entry into the forward funding agreement is seen as a vote of confidence not only in Reliwe’s development capabilities but in the resilience of Nordic real estate, which has remained stable despite broader European economic headwinds.

“The fundamentals in Northern Europe are compelling—strong rental demand, limited vacancy, and growing institutional appetite for core real estate,” said a KKR Real Estate representative. “Forward funding lets us shape these assets from the ground up and capture long-term value.”

A Broader Trend in Private Capital

This is not KKR’s first foray into forward funding. The firm has executed similar strategies in the UK and Germany in recent years, particularly in logistics and build-to-rent residential. Other global players like Blackstone, Brookfield, and AXA IM Alts have also embraced forward funding as a way to secure next-generation assets before completion, often negotiating favorable terms and incorporating green building standards from the outset.

With construction financing tightening across Europe due to rising interest rates and cautious banks, developers like Reliwe increasingly rely on private capital to de-risk and accelerate delivery. For investors, this creates an opportunity to acquire high-quality, inflation-protected assets at scale, while also ensuring greater control over ESG compliance and build quality.

The KKR-Reliwe deal comes as Europe continues to evolve into a battleground for high-grade real estate, especially in sectors like urban logistics, student housing, data centers, and life sciences. Forward funding is emerging as a preferred model for long-term capital seeking access to future-proof infrastructure without the volatility of traditional development cycles.