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Almanac inks $300m retail investment – Exclusive

In its latest platform-level deal, Almanac is betting on opportunistic and value-added repositioning of US properties.

Almanac Realty Investors is investing $300 million in PECO Real Estate Partners (PREP), a retail-focused company, PERE has learned.

Park City, Utah-based PREP was founded in May 2015 by Michael Phillips, the co-founder of real estate fund manager Phillips Edison. The firm invests throughout the US in retail and mixed-use properties that are at least 150,000 square feet, and in net lease properties.

Almanac’s capital commitment will fund opportunistic and value-added retail real estate purchases. With the investment, PREP will reposition lifestyle centers, power centers and enclosed malls that are undermanaged and undercapitalized, and expand its net lease investments platform, which buys triple-net-lease retail properties from non-institutional sellers.

“This commitment to Mike Phillips and PREP continues Almanac’s tradition of supporting highly successful and experienced investors who see a strong market opportunity to create value,” said Almanac partner Andrew Silberstein. “We are pleased to partner with Mike and his management team to grow the PREP business.”

Capital for the purchase came from the firm's most recent fund, Almanac Realty Securities VII, that closed in 2015 on $1.4 billion, PERE previously reported. The fund generated a 10.1 net internal rate of return as of March 31.

In November, Almanac made its largest-ever investment, also through ARS VII, PERE previously reported. The firm committed to provide up to $337.5 million of growth capital to Westcore Properties, a San Diego-based real estate company that invests in industrial and office properties in the western US.

Almanac, founded in 1981 as Rothschild Realty, has focused primarily on investing in private and public real estate operating companies. To date, the firm has committed or invested approximately $4.4 billion into more than 39 companies in North America.