Why Ares, Goldman and Blackstone are charging back into retail real estate

Retail’s real estate resurgence is in the spotlight again as a pair of massive private-equity-backed deals target neighborhood shopping centers across the US. On the heels of Blackstone’s $4 billion take-private deal involving 93 grocery-anchored strip malls, fellow investment giants Goldman Sachs Asset Management and Ares Management are getting in on the action as well.

As PERE reported last week, Goldman and Ares provided equity backing for Atlanta-based RCG Ventures’ $1.8 billion acquisition of a 100-asset shopping center portfolio from listed real estate investment trust Global Net Lease.

Taken together, the two deals represent the transfer of nearly $6 billion-worth of US retail properties from publicly traded REITs to private investment vehicles, and they signify a major comeback for a property sector that had been largely exiled from institutional portfolios.

On this episode, PERE Americas editor Greg Dool is joined by PERE Credit editor Samantha Rowan and PERE Deals editor Guelda Voien to explore the numerous layers to the RCG, Ares and Goldman deal and shine a light on retail’s renaissance more broadly.