GIC in JV with NYSE-listed RPT Realty REIT

PC Lee

(Dec 11): GIC, the sovereign wealth fund of Singapore, has formed a joint venture partnership with RPT Realty (RPT).

Listed on the New York Stock Exchange, RPT is a real estate investment trust that owns and operates a national portfolio of open-air shopping destinations located in top US markets.

RPT will contribute five properties, valued at US$244 million ($331.8 million), to the JV named RPT-GIC Venture (RGV).

The five properties are located in Florida, Minnesota and Missouri.

In return, RPT received US$118.3 million in gross proceeds from GIC, which acquired a 48.5% stake in the JV.

As part of the deal, GIC 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 the US.

As 51.5% JV partner, RPT will receive property management, construction management and leasing fees from RGV.

In addition, RPT will be responsible for the day-to-day management of the properties as well as sourcing future acquisitions for the joint venture.