SANTA BARBARA, CA-Retail investment and management specialist Investec has raised $130 million to acquire grocery- and drug-anchored shopping centers to expand its two-million-square-foot portfolio. Ken Slaught, Investec’s founder and president, says that the Santa Barbara-based company will target centers located in the coastal region of California and 'will continue its focus on best-in-class neighborhood shopping centers, anchored by dominant grocers and pharmacies."

Slaught is a strong believer in California retail. “We have been investing exclusively in California retail since 1988, so we are not surprised by the recent 'flight to quality' into these very markets on which many of our competitors are now focusing," he notes. He explains the focus on coastal markets: "The coastal markets of California are home to some of the most desirable real estate demographics in the country with high barriers to entry. From San Diego to Northern California, our neighborhood shopping centers provide our investors with extremely strong, risk adjusted returns in all economic cycles.”

While experts disagree over the current health and prognosis of the commercial real estate market in general, and some segments of the retail sector in particular, Slaught prefers to look at the big picture. “Over time, I am convinced these coastal markets of California will continue to thrive as they have for over the past 20+ years. Our properties, and those we seek to acquire, satisfy essential demand in local markets for products and services offered by a mix of national and local retailers. Investec has done very well by sticking to this disciplined approach," Slaught says.

In February 2010, Investec acquired a 100,000-square-foot Ralphs and CVS/pharmacy anchored center, the Plaza at Sunbow in San Diego, for $21 million. In October 2009, Investec completed the development of Gene Autry Plaza, a new $17.5 million, 60,000-square-foot shopping center in Palm Springs, Calif., and celebrated the grand opening of the first ground-up Smart & Final Extra! store in California. The center also includes Staples and 11,500 square feet of shop space.

Investec’s director of acquisitions Grant Harris reports that the company is negotiating the acquisition of two retail properties and is actively seeking additional opportunities.

Since its inception in 1983, Investec has handled more than $1 billion in real estate transactions.