TPG Real Estate has led an investor group, including Canadian investors Public Sector Pension Investment Board (PSP Investments) and La Caisse, and Norwegian sovereign wealth fund Norges Bank Investment Management, to acquire US grocery-anchored retail real estate firm ECHO Realty for $2bn (€1.72bn).
ECHO owns and operates approximately 230 retail centres located across the Midwest and Southeast US, anchored by grocery and convenience stores.
Thomas Karet, founder and CEO of ECHO, said: “Our more than two decades of building and operating neighborhood, necessity-based shopping destinations demonstrate the enduring demand for grocery-anchored retail close to home.
“With TPG’s investment and business building expertise, we are confident ECHO is well positioned to capitalise on demand for necessity-based shopping in key, high-performing markets. Together, we look forward to expanding our platform and continuing to deliver first-class experiences for shoppers and retailers.”
Jacob Muller, partner at TPG, said: “Our partnership reflects TPG’s long-term thematic focus on resilient and sustainable sectors like grocery-anchored retail. We are excited to partner with ECHO’s talented management team, as well as PSP Investments, La Caisse and Norges Bank Investment Management, to grow the ECHO platform, enhance its integrated development and operating capabilities, and deliver expanded, localised shopping offerings in markets across the US.”
Simon Marc, SVP and global head of private equity and real estate investments at PSP Investments, said: “Our real estate model is centred on forging partnerships with leading global operators and key strategic partners. This investment alongside TPG is a perfect example of our approach.
“The ECHO transaction allows us to deploy capital at scale in a high-quality, established platform, backing a sector of strong conviction. Grocery-anchored retail, underpinned by an essential-use tenant base, is a high-conviction opportunity that fits our long-term strategy.”
Rana Ghorayeb, EVP and head of real estate at La Caisse, said: “This transaction reflects our continued focus on reinvesting our capital into resilient, needs-based segments that demonstrate sustained underlying demand and stability.
“By partnering with TPG and other like-minded global institutional partners to acquire ECHO, we are strengthening our exposure to high-quality established platforms with attractive fundamentals, while enhancing the diversification of our portfolio.”
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