PGGM and Redevco unveil city-based investment strategy
PGGM Private Real Estate and retail real estate investment manager Redevco have launched Urban Retail Ventures, a €550m European commercial real estate joint venture. Urban Retail Ventures will invest in the most favourable shopping and leisure destinations in Europe, focusing on cities that are winning the battle as quality retail locations.
The new joint venture brings together Redevco’s proprietary ‘City Attractiveness’ research model and specialist retail market investment teams across Europe with the investment capabilities of the PGGM Private Real Estate team. The joint venture is seeded with the acquisition of Promenade Sainte-Catherine, a large-scale urban scheme in the centre of Bordeaux.
The strategy of Urban Retail Ventures is based on the strong belief that the most successful retail destinations in the future will be those that cater for the growing consumers’ desire to enjoy a day’s shopping rather than to be focused on buying goods. The selection of these dynamic, economically thriving hotspots with a well-curated mix of functions alongside retail, such as food and beverage and leisure, is based on Redevco’s City Attractiveness research model.
Redevco CEO Andrew Vaughan said: “By combining big data factors and in-depth local knowledge, we can pinpoint those city and micro-locations that can produce a ‘halo effect’ allowing premium operators in these sectors to maintain their edge over mid-market competitors, making these destinations the most likely winners in the current retail landscape which is both innovating and being disrupted at an astonishing speed.”