RPT Realty, a publicly traded real estate investment trust that owns and operates a national portfolio of open-air shopping destinations principally located in top U.S. markets, has formed a new joint venture with GIC, Singapore’s sovereign wealth fund.
The company contributed five properties valued at $244 million to the joint venture, referred to as the RPT-GIC Venture (RGV), and received $118.3 million in gross proceeds for the 48.5 percent stake in RGV that was acquired by GIC. Additionally, GIC has committed up to $200 million of additional capital to RGV over the next three years to fund its share of potential future acquisitions of grocery-anchored shopping centers in target markets in the United States. RPT retained a 51.5 percent stake in RGV and will receive property management, construction management and leasing fees from RGV. The company will also be responsible for the day-to-day management of the properties as well as sourcing future acquisitions for the joint venture.
The initial portfolio is comprised of five properties, totaling 776,905 square feet of gross leasable area. The name of the properties are Coral Creek Shops in Coconut Creek, Fla.; Mission Bay Plaza in Boca Raton, Fla.; The Crossroads in Royal Palm Beach, Fla.; Town & Country Crossing in Town & Country, Mo.; and The Shops at Old Orchard in West Bloomfield, Mich.
GIC’s additional $200 million commitment, combined with amounts committed by RPT, will provide RGV with up to $412.4 million of capital to deploy over the next three years. Proceeds from the initial contribution are expected to be used by the company to fund its share of potential future acquisitions within the joint venture on a leverage neutral basis for assets with similar quality to the initial portfolio within attractive high-growth markets such as Austin, Nashville, Charlotte, Raleigh, Minneapolis, Richmond, Phoenix, Miami, Tampa, Boston, and Orlando. The initial joint venture acquisitions are expected to close in 2020.
