PGGM Private Real Estate and Redevco launch €550m shopping centre fund

By James Wallace - Wednesday, April 11, 2018 14:51

PGGM Private Real Estate and Redevco have launched a €550m European commercial real estate joint venture, Urban Retail Ventures, which will invest in prime shopping and leisure destinations in Europe.

The joint venture is seeded with the acquisition of Promenade Sainte-Catherine, a large-scale urban scheme in the centre of Bordeaux.   

Urban Retail Ventures is part of PGGM Private Real Estate’s investment strategy to set up strategic partnerships and build platforms with prominent real estate managers that have a proven expertise of specific local markets. For Redevco this is the third European retail real estate joint venture the company has entered into, following earlier partnerships with UK institutional investor Hermes and U.S. private equity firm ARES. Redevco will be responsible for the asset management of Urban Retail Ventures.

Mathieu Elshout, senior director Private Real Estate, PGGM, said: “The PGGM and Redevco joint venture underlines our belief in top retail destinations, offering the right mix of functions and outperforming over the long term. As a long-term investor we believe in this research-driven approach. The aim is to make this portfolio completely carbon neutral by 2030, which will include the emissions of our retail tenants.”

Andrew Vaughan, Redevco’s CEO, said: “This joint venture brings together Redevco’s proprietary ‘City Attractiveness’ research model and specialist retail market investment teams across Europe, with the deep financial resources and expertise of PGGM, one of the top-10 largest global institutional real estate investors.

“By combining big data factors and in-depth local knowledge, we can pinpoint those city and micro-locations that can produce a ‘halo effect’ allowing premium operators in these sectors to maintain their edge over mid-market competitors, making these destinations the most likely winners in the current retail landscape which is both innovating and being disrupted at an astonishing speed.”

James Wallace is a freelance consultant and can be reached via Linkedin or email: jawallace32@gmail.com

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