TH Real Estate has acquired an 85% interest in a Las Vegas retail centre for its US regional mall fund.

It is investing in Town Square Las Vegas with Chicago-based Fairbourne Partners, which is taking the remaining 15% stake.

TH Real Estate raised more than $1bn for its T-C US Super Regional Mall Fund last year.

Town Square contains 26 buildings and has 1,147,202sqft of commercial space, 79% of which is retail, including restaurants, and 21% office.

It is 90% occupied, including retailers Apple, Whole Foods, H&M, Victoria’s Secret, Saks Off 5th and The Container Store.

Solar City, a company led by Elon Musk that specialises in solar power systems, leases approximately 113,000sqft of the office space.

Scott Kempton, managing director and portfolio manager, said: “Town Square aligns with our fund’s strategic focus on high-quality, well-located mall assets which have proven to be distinctly strong and stable performers throughout multiple cycles.

“We believe Town Square can benefit from proactive asset management and will reformat and remerchandise aspects of the retail offering to provide the fashion and entertainment mix that appeals to millennials and other consumers.”

Town Square is located at the junction of Interstates 15 and 215, at the south end of the Las Vegas Strip.

Kempton said: “It primarily attracts the local Las Vegas community, making it a true ‘town centre’ that draws an upscale demographic from the surrounding areas including Henderson and Summerlin.”

TH Real Estate has interests in other large retail assets in Las Vegas. In 2013 it acquired a 49.9% stake in the Grand Canal Shoppes from General Growth Properties. In July 2016, the company bought a 50% stake in Fashion Show mall, also from General Growth.

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