KKR & Co. has limited withdrawals from KKR Real Estate Select Trust, its nontraded REIT, as repurchase requests totaled more than the 5% quarterly limit already in the first quarter, according to a regulatory filing.

The requests totaled $128M, or about 8.1% of net asset value. The company is allowing investors to redeem about $79.3M, or about 62% of the total repurchase requests for each shareholder that made them.

Nontraded REITs have raised tens of billions of dollars in recent years, much of it from high net worth investors. Investment by individual investors in nontraded REITs, whose liquidity is limited even in the best of times, wasn't that common previously, as the vehicles tended to be the bailiwick of institutional investors.

In recent months, as asset valuations have come under pressure, those investors have wanted to cash out more than before, prompting Blackstone REIT and Starwood REIT to limit their redemptions as well.

The limit “somewhat debunks the notion that KKR might be a natural beneficiary of Blackstone’s net redemptions,” William Katz, an analyst at Credit Suisse, said in a note, as reported by the Financial Times. Rather, he said, it points to a “broadening contagion,” as wealthy investors seem eager to liquidate their holdings.

While nontraded REITs can cap withdrawals on a monthly or quarterly basis, if redemption demand continues, that could force the vehicles to sell assets.

KKR stock prices edged up nearly 2% by midday Friday. Over the last five days, however, its stock has dropped a little more than 4%, and over the last year, it has dropped more than 23%.