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Phillips Edison closes retail fund on $301m

The Cincinnati-based real estate investment firm secured commitments from nine investors for its fourth vehicle, PERE has learnt. The firm has also bought its first asset, a 170,000-sq. ft Target-anchored centre in Phoenix.

Phillips Edison has closed its fourth fund, and second institutional vehicle, on $301 million after securing commitments from nine investors, PERE has learnt.

The Cincinnati-based real estate investment firm was originally targeting $500 million for Phillips Edison Fund IV and held a first close on $145 million in December 2007. Sigrid Campbell, vice president, said the fund totalled $340 million when equity commitments and debt financing were in place.

The firm focuses on distressed neighbourhood shopping centres selling necessity-based goods across the US. Campbell added that during the current downturn consumers were looking to minimise discretionary spending but still needed the “basic necessities and services that grocers, discounters and other necessity-based retailers provide.”

Founded in 1990, Phillips Edison raised $275 million for its predeccessor fund, Phillips Edison Fund III, in January 2006. The fund was used to acquire a $1 billion portfolio of 116 value-added, anchored community shopping centres totaling more than 12 million square feet.

In March, the firm completed a three-year, $118 million revolving credit facility secured by 22 properties. The firm said at the time it had no “meaningful” debt maturities until 2011.