Singapore’s sovereign wealth fund GIC has established a joint venture with RPT Realty (RPT), an NYSE-listed real estate investment trust that owns and operates a national portfolio of open-air shopping destinations in the top US markets.
According to an announcement, RPT owns 51.5 per cent stake in the JV while GIC holds 48.5 per cent.
As part of the deal, RPT Realty contributed five properties valued at $244 million to the JV named RPT-GIC Venture. In return, it received $118.3 million in gross proceeds for the 48.5 per cent stake in RGV that was acquired by GIC.
GIC, meanwhile, has committed up to $200 million of additional capital to RGV over the next three years to fund its share of potential future acquisitions of grocery-anchored shopping centres in target markets in the US.
RPT 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.
As of September 30, 2019, RPT’s portfolio consisted of 48 shopping centers representing 11.8 million square feet and was 94.7 per cent leased.
Recently, GIC entered an agreement to acquire four hotels in the US for $249 million through its recently formed joint venture with NYSE-listed real estate investment trust Summit Hotel Properties.
The transaction marks the first set of deals made by the joint venture between GIC and Summit Hotel, which was set up to acquire US hotel assets.