Kimco Realty and Canada Pension Plan Investment Board Form Joint Venture to Acquire Prime Retail Properties

Strategic Insights -

Kimco Realty Corporation and the Canada Pension Plan Investment Board (CPPIB) have formed a joint venture to acquire prime neighborhood shopping centers throughout the United States. The initial investment of $370 million includes five former PL Retail properties acquired by Kimco in the fourth quarter of 2009. The joint venture, in which CPPIB will hold a 45% interest and Kimco a 55% interest, will be managed by Kimco, which will also earn asset management and other customary fees.

Key Takeaways:

  • The joint venture will acquire prime neighborhood shopping centers throughout the United States, with an initial investment of $370 million.
  • The initial portfolio includes five former PL Retail properties located in well-established neighborhoods and anchored by national retailers such as Costco and Wal-Mart.
  • Kimco will manage the properties and earn asset management and other customary fees as the operating partner.
  • CPPIB will acquire a 45% interest in the joint venture, while Kimco will retain a 55% interest.
  • The joint venture aims to grow through the acquisition of additional retail properties or portfolios over time.
  • Kimco President and CEO David Henry stated that the company is excited to form a long-term partnership with CPPIB, citing the pension fund's outstanding track record and talented real estate professionals.
  • Peter Ballon, Vice-President of Real Estate Investments at CPPIB, expressed interest in growing the relationship through strategic acquisitions and expanding the U.S. retail investment program.

Statistics:

  • Initial investment: $370 million
  • Number of properties in the initial portfolio: 5
  • Total leasable space in the initial portfolio: 1,662,956 square feet
  • GLA (square feet) of each property: Oakwood Plaza (Hollywood, FL) - 871,723, Morena San Diego (San Diego, CA) - 411,375, Redhawk Town Center (Temecula, CA) - 345,113, Pentagon Centre (Pentagon City, VA) - 337,429, Rancho San Diego (El Cajon, CA) - 98,396
  • Number of states in which Kimco operates: 45
  • Number of countries in which Kimco operates: 5 (United States, Canada, Mexico, Puerto Rico, and South America)

Sources:

  • "Kimco, CPPIB Form Joint Venture to Buy US Retail Properties" (Right Vision News)
  • "Kimco Realty Corporation, CPPIB Form Joint Venture to Acquire Retail Properties" (HT Syndication with permission from Right Vision News)
  • Kimco Realty Corporation's website (kimcorealty.com)
  • Canada Pension Plan Investment Board's website (cpplib.com)