US real estate manager Crow Holdings has set up a $2.6bn (€2.4bn) retail property investment platform with a global investor by recapitalising a 173-property portfolio.
Crow Holdings said two funds managed by its investment management business, Crow Holdings Capital (CHC), have recapitalised the $1.8bn property portfolio to pursue new acquisitions and create a joint venture with the unnamed institutional investor.
The joint venture platform also includes a “significant equity commitment” to pursue new acquisitions to continue to scale the business which intends to buy small-format, convenience-oriented, open-air, food and service shopping centers across the US.
The new platform’s portfolio includes properties located across key primary and secondary markets in over 50 cities in over 30 states in the US.
Michael Levy, CEO of Crow Holdings, said: “In our years of retail experience, we observed the secular trends that would support the resiliency of these small-format retail centers and become a leader in aggregating them, realising strong leasing activity in the sector, as a result.
“While e-commerce has been disruptive to other retail segments – and advantageous to industrial development – these types of food and service centers have succeeded where other, more goods-based retail has been negatively affected.”
Sam Peck, a managing director at CHC, said: “We have an incredible opportunity to continue to aggregate high-quality but non-institutional-scale assets and unlock their growth potential by applying an institutional asset management framework.”
“By investing in properties that are well-located with strong tenant demand, we benefit from a reliable income stream and potential capital appreciation by reinvesting into these dynamic retail centers serving local communities across the country.”
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