RPT Realty (RPT), a publicly traded real estate investment trust (REIT) that owns and operates a portfolio of open-air shopping destinations located in top U.S. markets, announced that it has formed a joint venture with GIC, Singapore’s sovereign wealth fund.
The Company contributed five properties valued at $244.0 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% stake in RGV that was acquired by GIC.
Additionally, GIC has committed up to $200.0 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 U.S. RPT retained a 51.5% 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.
“We are thrilled to be partnering with one of the world’s leading sovereign wealth funds,” said Brian Harper, President and Chief Executive Officer of RPT Realty.
“GIC’s investment with RPT validates the strength of our operating platform, the quality of our assets and the open-air shopping center sector overall, while providing the Company with significant capital to accelerate our entry into our high growth target markets that will support sustainable long-term NOI growth. Equally important is the access we will get to the intellectual capital of one of the world’s most successful and diversified real estate investors. We are excited to enter this next phase of the Company’s evolution,” he added.