FINANCE: Alaska Permanent Fund Corporation has made its first investment in continental European real estate by forming a retail joint venture.
The $51.2bn (£32bn) vehicle, represented by CBRE Global Investors, has entered into a strategic jv with European real estate developer Immochan.
The partnership sees APFC take a 50% stake in two of Immochan’s shopping centres in Spain and Portugal for €280m. “Other investments will potentially be added to the strategic joint venture,” the partners said.
APFC will acquire 50% of the shares of companies holding these two assets: Zenia Boulevard, a 850,000 sq ft regional shopping centre located in the province of Alicante, and Alegro Alfragide, a 40,000 sq ft shopping centre in Lisbon.
Immochan will continue as property manager. Asset management will be shared between Immochan and CBRE Global Investors.
The transaction is due to close shortly, pending regulatory approval.
Immochan said the objective of the partnership was “to support its growth strategy, which includes the development of 70 shopping centres and extensions over the next three years, with a total investment plan of more than €1.7bn”.
CBRE Global Investors was awarded the continental European separate account mandate by APFC in January 2014.
APFC said CBREGI’s appointment was “an extension of a long-standing relationship in the United States where it manages a diverse portfolio of assets across North America on behalf of the fund”.
The mandate is to build a core/core-plus real estate portfolio in continental Europe.
Myles Sanger, portfolio manager, CBREGI, said: “We are seeing a growing trend of cross-border capital flow and with this being APFC’s first investment in continental Europe, it is another strong indicator of investors looking to diversify their portfolios abroad.”
The legal advisers acting on behalf of Immochan were De Pardieu Brocas Maffei, Uria Menéndez, and Garrigues. The real estate advisers and financial advisers were Retail Partners Europe and PwC respectively.
On behalf of APFC and CBRE GI the legal advisers were Baker & McKenzie and Abreu, and the financial adviser was Deloitte.
