The ICSC Blog



NEW YORK, June 28, 2011 – BRE Retail Holdings Inc., an affiliate of Blackstone Real Estate Partners VI L.P. (“Blackstone”), today announced that it has closed the previously announced transaction to purchase the US assets and platform of Centro Properties Group and its managed funds (the “Company”) for approximately $9.0 billion. Included in the sale are 585 community and neighborhood shopping centers and related retail assets aggregating 92.1 million square feet across 39 states in the United States, as well as the Company’s US property management platform comprising 18 offices and approximately 600 employees.

The Company is the second largest owner of community and neighborhood shopping centers in the United States and has been a leader in redevelopment over the last decade. It is the largest landlord (by gross leasable area) to The TJX Companies, The Kroger Company, Ahold USA, Dollar Tree, Inc. and Staples, Inc. With this transaction, the Company is positioned to actively manage its portfolio, shifting from asset preservation to growth. It anticipates directing additional financial resources towards fully re-engaging its proven redevelopment program.

Michael Carroll, the current Chief Executive Officer of Centro Properties Group US, as well as the six additional members of the Company’s Management Committee, will continue at the Company. “This transaction is indicative of the strength of the Company’s US platform, including the high quality and diversification of its asset base and operating capabilities,” commented Carroll. “We are fortunate to have such a sophisticated investor as Blackstone as our partner. Together, we look forward to building a premier retail real estate company.”

He continued, “We are now capitalized to aggressively lease and reposition space and to support our retailers’ growth strategies. When combined with the scale and breadth of our portfolio, there are few landlords as well positioned to be long-term partners with our retailers.”

“We are extremely excited about this transaction, which enables us to expand our retail real estate presence with a leading platform,” added A.J. Agarwal, Senior Managing Director of The Blackstone Group. “The Company is well-positioned today with an attractive portfolio comprised of strategically located assets in dense, infill markets with productive grocer anchors. We look forward to partnering with the Company’s experienced management team to help them pursue the growth opportunity embedded within this portfolio.”

Blackstone’s financial advisers were Wells Fargo, Deutsche Bank Securities and Barclays Capital and its legal advisers were Simpson Thacher & Bartlett LLP, DLA Piper, and Gilbert + Tobin.

About Centro Properties Group US:
Centro Properties Group US is one of the premier real estate companies in the United States focusing on the ownership and management of community and neighborhood shopping centers. As a comprehensive real estate company, it manages a national portfolio of 585 properties aggregating approximately 92.1 million square feet of gross leasable area, including 37 properties held through joint ventures. The portfolio is strategically located across 39 states and is primarily grocery or name-brand discount chain anchored. Centro Properties Group US is headquartered in New York, New York with multiple regional and local offices across the United States. Further information is available at

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