The Public Sector Pension Investment Board (PSP Investments) and Nuveen Real Estate have formed a $790m (€704m) joint venture to acquire open-air shopping centres across the US.
The partnership has so far built an initial portfolio comprising 19 necessity-based retail assets totaling 3m sqft across Virginia, Arizona, Florida, Minnesota, Texas, California, Colorado and Washington.
The portfolio features two larger sub-portfolios, including a six-property, 801,000sqft collection across Fort Lauderdale, San Diego, Orange County, Dallas-Fort Worth, Minneapolis and Los Angeles, alongside an 11-property, 1.9m sqft portfolio spanning California, Colorado and Washington.
Julien Roy-Décary, managing director, real estate investments, Americas at PSP Investments, said: “We have been reshaping our US retail exposure around a much tighter definition of the sector – open-air centres anchored by grocers and daily-needs tenants, which aims to deliver a steady, inflation-linked income for our portfolio.
“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.”
Brian Wallick, portfolio manager, retail, Nuveen Real Estate, said: “Necessity-based retail has demonstrated remarkable resilience through various cycles, underpinned by consistent consumer demand for essential goods and services.
“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.”
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