ShopOne Centers REIT Inc. (“ShopOne”), a fully integrated U.S. grocery-anchored shopping center investment, management and operating platform, along with global private markets investment manager Pantheon and a leading global institutional investor, today announced the formation of a joint venture to acquire institutional-quality shopping centers based in key growth markets across the U.S.
The partnership will target necessity-based, value-oriented grocery-anchored centers, primarily located in high population areas, with a focus on locations in the top-100 Metropolitan Statistical Areas (“MSAs”). ShopOne has contributed an existing portfolio consistent with the partnership’s target investment criteria, with the partners each investing additional capital to create investment capacity totaling more than $1 billion. ShopOne will oversee the management and leasing efforts of all properties within the partnership’s portfolio.
The joint venture has closed on a newly-created $225 million senior credit facility providing debt capital for the initial portfolio, with additional capacity to fund future acquisitions.
“We are very excited to form this partnership with two highly experienced institutional partners that possess deep relationships within the investment community,” said John Roche, Chief Executive Officer of ShopOne. “Like us, they are bullish on the near- and long-term fundamentals of grocery-anchored shopping centers and the attractive risk-adjusted returns these assets can generate. By combining forces, we have the capital and platform to strategically add scale in the markets we target and unlock value for the communities we serve.”
David Elliott, Managing Director in Pantheon’s Real Estate group, added, “Grocery-anchored shopping centers have proven their resilience throughout the pandemic, playing a vital role in their local neighborhoods and communities. We’re delighted to work closely with the entire ShopOne team to execute a strategy focused on investing in and improving necessity-based centers in growth markets throughout the U.S.”
In addition to the top-100 MSAs, the joint venture will consider necessity and value-oriented grocery-anchored neighborhood and community shopping centers in select college towns or established tourist destinations that the partners believe will benefit from ShopOne’s proven operating platform.
“Due to the stability and strong financial performance exhibited during the pandemic, we’ve seen increasing liquidity in the capital markets for grocery-anchored shopping centers.” said Chris Reed, Chief Investment Officer of ShopOne. “Given the breadth of resources and expertise this joint venture possesses, we believe we offer an attractive and unique buyer profile that we will use to our advantage as we seek to grow our footprint in our target markets.”
Institutional Real Estate, Inc. (IREI) served as capital advisor to ShopOne.