Inland Forms $600M Joint Venture with Dutch

OAK BROOK, IL—The United States real estate market remains one of the most attractive places in the world to park your money, even for European investors. PGGM, for example, a Dutch pension fund service provider, has just made another major commitment to invest in America by forming a joint venture with a wholly-owned subsidiary of The Inland American Real Estate Trust, Inc. The new venture, between PGGM and IAGM Retail Fund I Member, L.L.C., will focus on acquiring and investing in necessity-based retail shopping centers in Texas and Oklahoma.

The partners say the venture will eventually have a value of more than $600 million. Inland American, a real estate investment trust based in suburban Chicago, will have an equity stake of 55% and brings in an existing portfolio of 13 retail centers scattered across the two states with about 2.3-million-square-feet. PGGM has contributed about $79.4 million of equity and will contribute another $50.7 million for new acquisitions in the targeted area. Inland has recently been on a spending binge in the two states. In January, for example, the trust completed the purchase of Rockwell Plaza, a 254,690-square-foot shopping center in Oklahoma City and Stone Ridge Market, a 218,436-square-foot shopping center located in San Antonio.