The sovereign wealth fund is joining RPT Realty, hedge fund Zimmer Partners and investment firm Monarch Alternative Capital to invest over $1.2 billion in U.S. net lease retail assets.
The partners have agreed to fund $470 million in retail real estate platform RGMZ over the next three years for approved acquisitions, including the initial investment portfolio that is to be seeded by RPT, according to an announcement.
RGMZ’s initial seed portfolio, which includes tenants like Starbucks, Walgreens and Whole Foods, is valued at $151 million and represents 6 percent of RPT’s fourth-quarter 2020 annualised base rent. RPT will hold a 6 percent equity stake and manage the day-to-day operations of the platform, source acquisitions and receive management, construction management and leasing fees. The other three partners will hold the remaining 94 percent of RGMZ.
Opportunities Available
«As a long-term investor, we believe there are opportunities in the retail net lease sector to acquire high-quality assets with strong tenant credit at attractive pricing. We expect to create value in identifying pricing inefficiencies between different tenant and property types within the retail sector,» Lee Kok Sun, GIC chief investment officer of Real Estate, said.
Net lease refers to a contractual agreement where a lessee pays a portion or all of the taxes, insurance fees, and maintenance costs for a property in addition to rent.
This is GIC’s second investment with RPT, following the establishment of a grocery-anchored $412.4 million shopping centre joint venture known as R2G in late 2019.
