Oaktree Capital Management has formed a $300m (€252m) US real estate investment partnership with REEF, a company known for creating alternative uses for underutilised urban spaces.
The duo have formed the Neighbourhood Property Group, which will invest in neighbourhood infrastructure to provide REEF’s “proximity services” to communities across the US.
REEF operates mobility, logistics hubs and neighbourhood kitchens in the US, Canada, and has a growing presence in Europe, likened to a WeWork for local retailers and restaurants.
The firm’s platform has a network of more than 4,500 parking lots and garages, connecting people and neighbourhoods to locally curated goods and services.
In addition to over 100 neighbourhood kitchens, REEF has also recently announced partnerships with DHL for retail micro-fulfilment and electric bike delivery, national COVID-19 testing and pop-up clinics with Carbon Health and BioReference.
Josh Connor, co-portfolio manager of Oaktree’s infrastructure investment strategy and chairman of Neighborhood Property Group, said: “As long-term investors who specialise in value-add transportation infrastructure, REEF fits our thesis that core parking facilities should be augmented with technology to transform these core assets into mobility infrastructure hubs.
“These alternative uses support communities with critical last-block logistics solutions such as food delivery, micro-mobility, same-day parcel delivery, essential groceries and electric charging infrastructure.”
REEF has also raised $700m to expand its digital platform through a fundraising led by Mubadala Capital and including SoftBank Vision Fund, Oaktree funds, UBS Asset Management and Target Global.
Ari Ojalvo, CEO of REEF, said: “We are excited for this next stage of growth and are committed to continue learning, listening and working with our communities to reimagine urban real estate into localised and networked infrastructure that entrepreneurs and cities can use to deliver goods and services sustainably and directly to our neighbourhoods.
“By working together, we can reimagine and rebuild our urban spaces for people, not just cars, and help our cities become more sustainable and inclusive centres of community and opportunity.”
To read the digital edition of the latest IPE Real Assets magazine click here.
