Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Sign Up / Login Logout

Lost your password?
Register
Forgotten Password
Cancel

Register For This Site

A password will be e-mailed to you.

  • Capital Markets
  • Events
    • 2021 Mingtiandi Event Calendar
    • Join the Mingtiandi Asia Value-Add Forum 2021
    • Join the Mingtiandi Multi-Family Investment Forum 2021
    • Join the Mingtiandi Logistics Real Estate Forum 2021
    • Join the Mingtiandi Sustainable Real Estate Forum 2021
    • Join the Mingtiandi Data Centre Forum 2021
    • Join the Mingtiandi Office Strategies Forum 2021
    • Join the Mingtiandi Proptech Forum in November
    • More Events
  • MTD TV
  • People
  • Logistics
  • Asia Outbound
  • Retail
  • Design & Construction
  • Research & Policy
  • Advertise

GIC Invests in $1.2B US Retail JV with RPT Realty, Monarch, Zimmer

2021/03/08 by Christopher Caillavet Leave a Comment

River City Marketplace in Jacksonville, Florida

River City Marketplace in Jacksonville, Florida is among RPT’s portfolio of suburban shopping centres

Singapore sovereign wealth fund GIC has made a further bet on middlebrow American retail by investing in a joint venture with New York-listed RPT Realty and two other US-based partners, targeting the acquisition of over $1.2 billion in strategic assets.

RPT, a REIT that owns and operates a portfolio of shopping centres in big US cities and suburbs, announced last week the formation of a retail real estate platform called RGMZ with GIC, hedge fund Zimmer Partners and investment firm Monarch Alternative Capital.

Yardi Refurbish or Rebuild

The four players have committed to funding $470 million worth of acquisitions over the next three years for the platform, which will be seeded with 42 single-tenant, net lease retail assets created by RPT after the subdivision of some of its existing shopping centres.

The RGMZ platform is GIC’s second investment with RPT, following the establishment of a grocery-anchored $412.4 million shopping centre JV known as R2G in late 2019.

“We expect to create value in identifying pricing inefficiencies between different tenant and property types within the retail sector,” said Lee Kok Sun, chief investment officer of real estate at GIC. “We are pleased to grow our strategic partnership with RPT, and look forward to scaling the joint venture together.”

Unlocking Value

RGMZ’s initial seed portfolio is valued at $151 million and represents 6 percent of RPT’s fourth-quarter 2020 annualised base rent. RPT will hold a 6 percent equity stake and manage the day-to-day operations of the platform, source acquisitions and receive management, construction management and leasing fees. The other three partners will hold the remaining 94 percent of RGMZ.

lee-kok-sun GIC

Lee Kok Sun is setting up GIC’s second venture with RPT

Additionally, RPT will invest up to $70 million in preferred equity that will be a component of the Zimmer/Monarch equity commitment and will not be a direct obligation of the platform. RGMZ has received commitments for a $175 million secured credit facility to fund acquisitions, including the initial portfolio, subject to final loan documentation.

RPT describes its approach as a complementary net lease strategy that will enable the REIT to unlock value in mispriced multi-tenant assets. In a net lease, the lessee pays some or all of the taxes, insurance fees and maintenance costs for a property in addition to rent.

Data Centre Forum

Although RPT has yet to specify which single-tenant assets it will sell to RGMZ, a presentation made available by the REIT suggests a mix of resilient, high-credit-quality tenants with long-term leases — names like Starbucks, Whole Foods Market and Walgreens.

The exit strategy upon full deployment is to retain, sell or stage an IPO for the $1.3 billion portfolio.

Shopping Centre Empire

New York-based RPT, formerly known as Ramco Properties Trust and Ramco-Gershenson Properties Trust, owns and operates 49 shopping centres (including five owned through a joint venture) with 11.9 million square feet (1,105,546 square metres) of gross leasable area.

Office Investment

Among the REIT’s flagship properties are River City Marketplace in Jacksonville, Florida; The Shops on Lane Avenue in Upper Arlington, Ohio; Woodbury Lakes in Woodbury, Minnesota; and Webster Place in Chicago.

Before hooking up with RPT, GIC’s most recent US deal was in October 2019 when the fund formed a joint venture with a New York-listed REIT, Summit Hotel Properties, to acquire four hotels along the west coast of the US for $249 million. The 710-room portfolio consists of two Residence Inn by Marriott hotels in Portland, Oregon, and a pair of Hilton Garden Inns in California’s Bay Area.

Related Stories

  • Blackstone Selling $2.9B Aussie Logistics Portfolio to ESR-GIC PartnershipBlackstone Selling $2.9B Aussie Logistics Portfolio to ESR-GIC Partnership
  • Warburg Pincus, Hillhouse Lead $700M Investment in JD PropertyWarburg Pincus, Hillhouse Lead $700M Investment in JD Property
  • Kerry-GIC JV Buys Mixed-Use Site in Shanghai’s Pudong District for $930MKerry-GIC JV Buys Mixed-Use Site in Shanghai’s Pudong District for $930M
  • Mapletree Said Buying Would-Be Uber HQ in San Francisco Bay Area for $420MMapletree Said Buying Would-Be Uber HQ in San Francisco Bay Area for $420M

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Retail Real Estate Tagged With: daily-sp, Featured, GIC, Retail, RPT Realty, US, weekly-sp

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Yardi Refurbish or Rebuild

Get Mingtiandi Delivered

Office Investment

MTD TV

MTD TV proptech show

COVID-19 Accelerates Proptech Adoption in Asia: Watch on MTD TV

Data Centre Operators Tackle APAC Expansion Challenges in MTD TV Panel

More MTD TV Videos

Latest Stories

Grosvenor Latest Global Investor to Back Taronga Real Estate Tech Fund

Tricia Song Colliers

Singapore Property Investment Jumped 48% in Q1 Says Colliers

ESR Said in Talks to Acquire 8 India Projects and More Asia Real Estate Headlines

Sponsored Features

Tony Horrell

Colliers’ Global Investor Sentiment Report Anticipates Up to 50% Surge in Investment in 2021 Sponsored Feature

Andrew-Slevin-John-Foord (4)

Insurtech to Help Address Underinsurance Across Asian Real Estate Assets in 2021 Sponsored Feature

CK Lau

Asia Pacific Logistics Sector: Increasingly Varied Sector Requires Multiple Approaches Sponsored Feature

More Sponsored Features>>

MTD-QR-Code-320

Top Stories

Blackstone Selling $2.9B Aussie Logistics Portfolio to ESR-GIC PartnershipBlackstone Selling $2.9B Aussie Logistics Portfolio to ESR-GIC Partnership

Asia Real Estate People in the News 2021-04-17Asia Real Estate People in the News 2021-04-17

APG Buys 20% Stake in Greater China Data Centre Operator OneAsiaAPG Buys 20% Stake in Greater China Data Centre Operator OneAsia


Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • Events
    • 2021 Mingtiandi Event Calendar
    • Join the Mingtiandi Asia Value-Add Forum 2021
    • Join the Mingtiandi Multi-Family Investment Forum 2021
    • Join the Mingtiandi Logistics Real Estate Forum 2021
    • Join the Mingtiandi Sustainable Real Estate Forum 2021
    • Join the Mingtiandi Data Centre Forum 2021
    • Join the Mingtiandi Office Strategies Forum 2021
    • Join the Mingtiandi Proptech Forum in November
    • More Events
  • MTD TV
  • People
  • Logistics
  • Asia Outbound
  • Retail
  • Design & Construction
  • Research & Policy
  • Advertise

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Newsletter Subscription
  • Terms of Use
  • Privacy
  • Advertise
  • Join the Mingtiandi Team