US convenience retail shopping centre owner Bond Street REIT has secured a capital injection of up to $300m (β¬257.3m) from affiliates of Conversant Capital.
Bond Street said it will use the investment to expand its 39-asset portfolio, with plans to acquire over $150m in new assets each year and expects to close on $60m of new acquisitions in the coming months.
The company also said assets from other entities advised by Bond Street will be merged into its private real estate investment trust.
Michael D Reynolds, founder and CEO of Bond Street, said: βWe are delighted to announce Conversantβs commitment and are excited for our partnership. It is clear to us that their experience in scaling real estate platforms will be invaluable as we embark on the next phase of our growth.
βTheir investment will enable us to capitalise upon the mispricing we see in attractive convenience retail assets. We will further build on our position as the buyer of choice for owners seeking liquidity and have the capabilities to acquire assets through tax efficient structures.β
Michael Simanovsky, managing partner of Conversant, said: βWe are thrilled to be partnering with Bond Street and have been impressed with the portfolio Michael and the team have built. Now is an opportune time to acquire convenience retail assets, and weβre excited by the opportunity to scale the Bond Street platform.
βWith the attractive supply dynamic, strong market rent growth, and institutionalisation of the asset class, we see convenience retail as uniquely positioned to outperform over the long-term.β
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