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GIC invests in Mexican retail

The property investment arm of the Government of Singapore has purchased a minority stake in Mexico Retail Properties, an affiliate of Denver, Colorado-based private equity real estate firm Black Creek Group.

GIC Real Estate has taken a minority stake in Mexico Retail Properties (MRP), a developer and operator of retail properties in Mexico.

The real estate arm of the Government of Singapore Investment Corporation (GIC) is investing through a combination of debt and equity in MRP’s operations as well as its second Mexico-focused investment vehicle. GIC also invested in MRP’s initial fund, which raised $242 million (€157 million) of discretionary capital in 2004 from four major institutions.

The Mexican market represents a “compelling” retail investment owing to the country’s growing economy, emerging middle class and lack of US-style retail centers, according to GIC president Dr. Seek Ngee Huat.

Mexico Retail Properties, an affiliate of Denver, Colorado-based private equity real estate firm Black Creek Group, currently has a portfolio of 14 retail centers as well as five projects under development and 21 near-term projects.

The properties are anchored by retailers such as Wal-Mart, Costco and Home Depot. The majority of MRP’s centers are anchored by Wal-Mart. MRP has signed 22 Wal-Mart leases, making it one of the largest owners of Wal-Mart anchored centers in the country.