WASHINGTON, DC-Inland Real Estate and MAB Retail Partners, an Australian-based company, are partnering in a venture in which they plan to develop as many as 20 grocery-anchored retail centers throughout the southeastern US and Mid-Atlantic states. The projects are expected to have a value of as much as $325 million.

The deal will diversify Inland's geographic footprint and retailer base, says Mark Zalatoris, president and chief executive officer for Oak Brook, IL-based Inland Real Estate, in a prepared statement. "Our development joint venture with MAB provides us with the opportunity to develop and acquire brand new, high quality, grocery-anchored shopping centers after stabilization and at a discount to market value, and allows us to efficiently enter the vibrant southeastern region."

Indeed, a quick glance at a map of Inland's portfolio shows a company devoted to its Mid-Western roots. It has assets through Minnesota, Wisconsin, Illinois, Indiana, Ohio and one in Nebraska.

Under the terms of the joint venture agreement, Inland Real Estate has exclusive rights to all grocery-anchored, build-to-suit opportunities in the southeastern US sourced by MAB. The REIT will provide 90% of the equity required to fund approved project costs, with MAB responsible for the remaining 10% of the equity. The joint venture agreement also provides that Inland Real Estate will purchase each grocery-anchored center at a discount to fair market value after stabilization.

A typical project likely will be a 50,000-square-foot grocery store with approximately 20,000 square feet of additional retail space.

Instant Insights /

Inland, MAB $325M JV Targets East Coast, SE

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