Canadian pension fund PSP Investments and asset manager Nuveen announced Wednesday the launch of an initial $790 million joint venture to own and acquire open-air shopping centers across the United States.
So far, the strategy has closed on acquisitions totaling 3 million square feet across the U.S. Going forward, the strategy will focus on properties in U.S. metro areas with strong population growth, rising household incomes, and high barriers to entry, according to a statement from the two firms.
The joint venture has acquired 19 assets to date, including the Shoppes of Lorton Valley in Lorton, Virginia, and Las Tiendas Village in Chandler, Arizona.
“We have been reshaping our U.S. retail exposure around a much tighter definition of the sector: open-air centers anchored by grocers and daily-needs tenants, which aims to deliver a steady, inflation-linked income for our portfolio,” said Julien Roy-Décary, managing director, real estate investments, Americas, at PSP Investments, in a statement. “Nuveen brings the sourcing reach and operating depth this kind of portfolio demands, and what we own today is exactly the retail exposure our strategy calls for.”
The joint venture will focus on open-air shopping centers anchored by grocers and necessity-based retailers, with essential services that can demonstrate durable performance and foot traffic.
“Necessity-based retail has demonstrated remarkable resilience through various cycles, underpinned by consistent consumer demand for essential goods and services,” said Brian Wallick, portfolio manager, retail, at Nuveen Real Estate, in a statement. “Coupled with PSP Investments’ long-term capital, this venture is designed to deliver both durable income and long-term value creation. We’re confident this combination of scale, relationships, and local execution positions us strongly in one of the most stable and defensive segments of retail real estate.”
PSP Investments manages C$320.6 billion ($227.97 billion) in assets for nearly 1 million beneficiaries—primarily public service professionals. Nuveen Real Estate manages $136 billion in assets.
Tags: Nuveen, PSP Investments