Vestar, a privately held real estate company, is planning a $250 million retail investment fund, Vestar Strategic Retail Partners, the company announced Thursday. Vestar Strategic Retail Partners will acquire value-add retail properties ranging from $20 million to $100 million in the West and Southwest regions of the United States. The fund is expected to close by mid-2012.
Vestar, one of the leading privately held real estate companies in the western United States, announced today that it has launched a retail investment fund, Vestar Strategic Retail Partners. Vestar is looking to raise $250 million of equity capital by mid-year 2012.
Vestar Strategic Retail Partners will acquire value-add retail properties ranging from $20 million to $100 million in the West and Southwest regions of the United States. The fund will consider individual properties and portfolios. Once raised, the fund will be Vestar’s exclusive vehicle for acquiring properties. Dallas-based Stephen Inc. is marketing the fund to investors.
“We believe this is a great time to invest in value-add retail properties,” said Bob Cavanaugh, Chief Investment Officer of Vestar. “With our firm’s track record of acquiring and stabilizing struggling assets, we are confident that our in-house capabilities will create meaningful value for the fund’s investors.”
In the last two years Vestar has acquired more than $400 million in shopping center assets in conjunction with institutional partners. Currently, it manages more than 21 million square feet of retail properties with an average occupancy of 97 percent. Vestar’s strategy is to acquire and reposition properties with a three to seven year hold period. The firm targets leveraged returns in the mid to high teens.
One of the leading privately held real estate companies in the western United States, Vestar specializes in the acquisition, development and management of open-air retail centers. Vestar owns and manages retail and entertainment destinations, power and lifestyle centers, and neighborhood centers of varying size and scale that serve as community destinations with a unique sense of place. Since its inception in 1977, Vestar has earned a reputation for integrity and responsibility in the fields of commercial retail ownership, development and property management.