Dutch pension fund service provider PGGM Private Real Estate Fund has entered into a new venture with IAGM Retail Fund, a subsidiary of Inland American Real Estate Trust.
Dallas skyline
PGGM’s head of private real estate, Guido Verhoef, described the joint venture as a continuation of a relationship between the two companies “based on a good portfolio of retail assets.”
The $600 million joint venture will involve multi-tenant retail shopping centres in Texas and Oklahoma. Inland American will be the majority equity stakeholder in the deal at 55 per cent. It will also be the managing member and retain property management rights under the agreement.
PGGM contributed close to $79.4 million in equity to the deal. Inland brought a portfolio of 13 stabilised necessity-based retail assets, measuring a total of approximately 2.3 million square feet.
The properties are located in Houston, San Antonio, Dallas and Oklahoma City and have anchor tenants like Target, Kroger and H-E-B. PGGM will also contribute $50.7 million for new acquisitions in the target markets to the deal.
According to Steven Zeeman, senior investment manager of PGGM Private Real Estate, this deal fits the company’s investment criteria.
