TIAA-CREF is entering into a joint venture with APG to acquire super-regional malls in the U.S., confirmed Steven Hason, managing director and co-head of Americas real estate for APG.
TIAA-CREF will own 51% of the joint venture; €275 billion ($375 billion) APG, which administers pension schemes in the Netherlands, will own 49%.
The joint venture already has acquired five properties worth a total of more than $1.5 billion from TIAA-CREF — four properties of 4.6 million square feet of gross leasable space in a 50/50 joint venture with mall operator CBL & Associates Properties Inc. and one property containing 1.2 million square feet of gross leasable space in a 50/50 joint venture with Westfield Group, said Scott Kempton, a managing director, global real estate portfolio management at TIAA-CREF.
Both TIAA-CREF and APG are also contributing capital, but the terms of the transaction are not being disclosed.
The joint venture also could buy additional dominant centers that are top-quartile investments as those properties or positions in them become available.
The joint venture is focused on an asset class that has low volatility and high returns, Mr. Kempton said. Much of these properties are owned by REITs, and positions in these properties do not come up for sale very often, he said.