RPT Realty and Singaporean sovereign wealth fund GIC Pte. Ltd. established a U.S. shopping center joint venture.
The open-air shopping center real estate investment trust contributed five properties valued at $244.0 million to the RPT-GIC Venture, generating $118.3 million in gross proceeds from the sale of a 48.5% stake in the joint venture to GIC. The REIT kept a 51.5% interest in the venture.
The 97.7%-leased portfolio has a total gross leasable area of 776,905 square feet and consists of the 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 Missouri; and The Shops at Old Orchard in West Bloomfield, Mich.
RPT will receive property management, construction management and leasing fees from the joint venture. It will also lead the day-to-day management of the properties and source future transactions for the partnership.
GIC, on the other hand, committed as much as $200.0 million in additional capital to fund the potential acquisitions of grocery-anchored shopping centers in key U.S. markets over the next three years. The partnership is looking to complete initial acquisitions in 2020.
Goldman Sachs & Co. LLC was the exclusive financial adviser to RPT, while Goodwin Procter LLP was its legal counsel.