Oak Brook, Ill. Inland Western Retail Real Estate Trust announced that the company has forged a joint venture with RioCan Real Estate Investment Trust, Canada’s largest REIT.
The initial RioCan investment of approximately $138 million includes eight grocery and necessity-based-anchored shopping centers located in Texas.
Under the terms of the agreement, RioCan will acquire an 80% interest in the venture and Inland Western will retain 20% interest and will additionally earn property management and asset management, as well as other customary fees on the portfolio.
Inland Western and RioCan said they intend to grow the venture over time through acquisition of additional necessity-based retail properties.
“This transaction represents the continued execution of our strategy to align ourselves with strong institutional partners,” said Shane Garrison, chief investment officer of Inland Western. “RioCan is the dominant retail property owner in Canada, and we are pleased to partner with them as they selectively enter the U.S. real estate market. We look forward to expanding this relationship and the alignment of these highly experienced real estate platforms.”
The Texas portfolio consists of approximately 1.2 million sq. ft. and has tenant anchors including Wal-Mart, Tom Thumb, HEB, PetSmart, Ross Dress for Less and Hobby Lobby.