Federal Realty Investment Trust announced a binding contract to set up a new joint venture with Primestor Development Inc., with the trust agreeing to invest roughly $345 million for an approximate 90% interest in the venture.
Federal Realty's stake in the venture will be seeded with a full interest in five community shopping centers and one center under redevelopment, as well as a 25% minority stake in a seventh shopping center.
The company noted that its investment includes a $20 million commitment to wrap up the redevelopment of one of the centers, adding that the initial funding will come from its revolving credit facility and assumed debt.
The seven properties in the portfolio encompass more than 1.3 million square feet on 114 acres of urban land, with tenants including Ross Dress for Less, Marshalls and Kroger's Food 4 Less.
Los Angeles-based Primestor serves the urban Latino communities of Southern California.