An investor group led by TPG Real Estate acquired ECHO Realty, a Pittsburgh-based owner and operator of about 230 grocery-anchored retail centres, for about US$2bn, the partners said on 5 June.
Why TPG Real Estate-led investor group (with PSP Investments, La Caisse and NBIM) is buying ECHO Realty
TPG partner Jacob Muller said the deal reflects the firm's focus on resilient sectors such as grocery-anchored retail. PSP Investments described it as a high-conviction opportunity that fits its long-term strategy.
Deal terms and financing
TPG led the investment alongside PSP Investments, La Caisse and Norges Bank Investment Management. The group plans to keep ECHO's management, led by founder and chief executive Thomas Karet, and to scale the platform in existing and new markets.
Market context
Founded in 2000, ECHO has acquired and developed more than 16 million square feet of shopping centres. Its anchor tenants include Giant Eagle, Publix, Harris Teeter, Safeway, ACME Markets and Whole Foods Market.
