Dutch money manager PGGM and Inland Real Estate Corp. created a joint venture investing in grocery-anchored and community retail centers in the Midwest, confirmed Matthew C. Tramel, Inland spokesman.
PGGM manages e93 billion ($111 billion) for Dutch pension fund clients including the e84.3 billion Pensioenfonds Zorg en Welzijn, Zeist.
Inland Real Estate, a REIT, will be contributing 12 properties valued at about $230 million. Inland will hold a 55% stake in the joint venture, Mr. Tramel said.
The joint venture will acquire new properties with a total value of $270 million.
PGGM will own a 45% interest in the joint venture and invest a total of $130 million: $20 million toward the three seed properties, $50 million toward future contributed properties and another $60 million for new acquisitions, Mr. Tramel said.
Inland Real Estate will act as managing partner, earning fees for asset management, property management, leasing and other services. Inland Institutional Capital Partners Corp. was Inland Real Estate Corp.’s adviser on the deal. Jones Lang LaSalle assisted PGGM with the due diligence on the contributed properties.
The joint venture will add between 50% and 55% leverage.
Officials at PGGM could not be reached for comment.