Two global institutional investors have contributed to a $1.6bn (€1.36bn) fundraise secured by Bain Capital Real Estate and 11North Partners for their joint US and Canada open-air retail-focused operating platform.
The capital raise was anchored by the two unnamed global institutional investors and includes commitments from existing and new Bain Capital investors.
Including capital from Bain Capital Real Estate Fund III, the platform’s total investable equity exceeds $2bn.
Bain Capital and 11North teamed up in April 2024 to acquire and manage open-air retail centres in the US and Canada.
At the time, the companies said the partnership will target a wide range of investment opportunities across different risk and return profiles and will mainly focus on shopping centres with a high concentration of stores selling everyday essentials.
Most recently, Bain Capital and 11North acquired a $395m, 10-asset portfolio of Publix-anchored centres in infill markets across Florida and Charleston, South Carolina. The acquisition followed the purchase of three open-air lifestyle retail centres in Oklahoma City, Oklahoma, for approximately $212m.
Ryan Cotton, a partner and head of Bain Capital Real Estate, said: “This platform is a testament to Bain Capital’s more than 40-year heritage of thematic investing in the consumer sector, which has enabled us to build deep institutional knowledge and differentiated insight into how real estate can capitalise on and adapt to shifts in consumer behaviour.
“It also reflects how we invest across Bain Capital Real Estate – thematically, with advantage, and with discipline in partnership with aligned operators who bring deep domain expertise.”
Brian Harper, founder and managing partner of 11North Partners, said: “From the beginning of 11North Partners, our shared vision with Bain Capital was to build a platform that could thoughtfully invest across both core plus and value-add opportunities. This first capital raise delivers on that vision and positions us to scale with discipline.
“We are grateful to be partnering with two of the largest and most respected investors in the world, and we will remain focused on acquiring generational grocery-anchored real estate across the US.
Martha Kelley, managing director at Bain Capital Real Estate, said: “We see open-air retail continuing to benefit from durable secular trends, including the growth of omnichannel shopping, healthy sales performance in essential categories, and evolving consumer patterns that keep daily needs closer to where people live.
“These dynamics create a supportive environment for necessity-based centres in strong, accessible locations, and with the right partnership in place, we believe we are well positioned to continue assembling a best-in-class portfolio that delivers lasting value for our investors.”
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