SINGAPORE - Singapore's sovereign wealth fund GIC has entered into a joint venture with Macerich Company to take a 40-per-cent interest in five shopping malls in the United States.
GIC will own stakes in Arrowhead Towne Center in Glendale, Arizona; Lakewood Center in Lakewood, California; Los Cerritos Center in Cerritos, California; Washington Square in Portland, Oregon; and South Plains Mall in Lubbock, Texas.
The transactions are subject to closing conditions and are expected to close in phases starting in October 2015 and concluding in the first quarter of 2016, GIC said in a statement on Thursday (Oct 1).
Said Mr Lee Kok Sun, regional head for Americas, GIC Real Estate: "We expect these high-quality assets to continue generating steady income streams and are confident of their growth moving forward.
"As a long-term value investor, we look forward to partnering with Macerich, one of the premier owners and operators of shopping centres in the US, as they share our core investment belief of being long-term."
Macerich currently owns 55 million sq ft of real estate, consisting mainly of interests in 51 shopping malls.
It is also selling 49-per-cent stakes in three shopping malls to property investor Heitman LLC.
The eight malls to be sold are together valued at US$5.4 billion (S$7.69 billion), according to Macerich.