U.S. PECO launches $414.5 million JV with Northwestern Mutual

U.S.-based shopping centres developer Phillips Edison & Company (PECO) has launched a $414.5 million joint venture (JV) with financial services company Northwestern Mutual for 20 retail centres.

The companies formed Grocery Retail Partners I (GRP I) and Grocery Retail Partners II (GRP II). Under the terms of Grocery Retail Partners I (GRP I), Northwestern Mutual acquired an 85 percent interest in a 17-centre portfolio, which is currently valued at $368 million.

PECO maintained 15 percent ownership in the portfolio while providing asset and property management services for the joint venture. The proceeds from GRP I will be deployed by PECO to deliver its balance sheet, fund redevelopment projects and further expand its portfolio of grocery-anchored centres.

Under the terms of GRP II, Northwestern Mutual acquired a 90 percent interest in three shopping centres valued at approximately $46.5 million, and PECO III maintained a 10 percent ownership in the portfolio. U.S.-based brokerage services firm Holliday Fenoglio Fowle acted as exclusive financial advisor to PECO in forming GRP I and GRP II.