NETHERLANDS/US - Dutch pension fund APG and the US pension fund manager TIAA-CREF have joined forces to invest in five US shopping malls valued at $1.5bn.
APG purchased a 49% stake and TIAA-CREF brought the remaining 51%.
The Wall Street Journal reported APG has invested an estimated $375m in this real estate transaction though both investors refused to comment.
Despite a general trend of stores closing within shopping malls and increasing vacancy rates, officials at APG said they plan to avoid this by investing in high-end malls which continue to attract consumers.
APG spokesperson Harmen Geers said: "Investment in single stores does not seem sensible given the competition from internet retail sales but these high-end shopping malls are more than just malls. They are accessible, have high occupancy rates and include restaurants and cinemas which continue to draw crowds."
The five malls are the Westfield Montgomery mall in Bethesda; Oak Park Mall in Kansas City; West County Center in St. Louis; CoolSprings Galleria in Nashville and Pearland Town Center in Pearland.
The joint venture is currently looking for further real estate investment opportunities in the US top quartile malls, said TIAA-CREF spokesperson Abby Cohen. She declined to provide more details.
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