Canadian pension investor PSP Investments and Nuveen Real Estate launched a U.S. shopping center venture with $790 million in investments already assembled, targeting properties built around routine consumer spending.
The companies announced the venture Oct. 21. The 19 open-air properties span about 3 million square feet, with holdings in Washington, Colorado, California, Texas, Minnesota, Florida, Arizona and Virginia, the companies said.
Two group purchases account for 17 of the properties. One includes six centers with a combined area of about 801,000 square feet in markets including Fort Lauderdale, San Diego and Dallas-Fort Worth. The other covers 11 properties totaling about 1.9 million square feet in California, Colorado and Washington.
The companies also identified The Shoppes of Lorton Valley in Virginia, a 110,000-square-foot center anchored by Giant, and Las Tiendas Village in Arizona, anchored by Sprouts, among the acquisitions.
PSP Investments invests funds transferred by the Canadian government for four federal pension plans: the Public Service, Canadian Forces, Royal Canadian Mounted Police and Reserve Force. Julien Roy-Décary, managing director of real estate investments for the Americas at PSP Investments, said the acquired properties fit its intended retail strategy. The investor’s stated aim is steady income linked to inflation from centers serving everyday shopping needs.
Nuveen Real Estate portfolio manager Brian Wallick said retail businesses serving essential needs had shown resilience through economic cycles. For future purchases, the partners are seeking centers with grocers, stores selling everyday goods and essential services in metropolitan areas where populations and household incomes are growing.
