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$450M JV Sets Sights on Midwest, Mid-Atlantic

FARMINGTON HILLS, MI-Ramco-Gershenson Properties Trust and an unnamed investor advised by Heitman LLC plan to focus on core shopping center acquisitions.

By Danielle Anderson | Updated on January 10, 2007

(For more retail coverage, click GlobeSt.com/RETAIL.)

FARMINGTON HILLS, MI-Ramco-Gershenson Properties Trust and an investor advised by Heitman LLC have formed a joint venture to acquire up to $450 million of core and core-plus community shopping centers in Midwest and Mid-Atlantic states. This agreement, which closed at the end of 2006, follows Ramco’s mid-December announcement that it was forming a $1.5-billion joint venture with Canadian firm RioCan Real Estate Investment Trust.

In the $450-million JV, the unnamed investor owns 80%, while Ramco holds the remaining equity interest. Ramco contributed three of its core shopping centers, valued at approximately $125 million, to the agreement. The locally based shopping center REIT is managing both the properties and the JV, which has 24 months to acquire the balance of its program commitment. The leverage on the acquired assets is expected to be 65%, according to Ramco.

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