Chicago based Shopcore Properties, a national owner and operator of community, power and grocery-anchored shopping centers, purchased the Lakeshore Plaza retail center in San Francisco, located at 1501-1599 Sloat Boulevard, for $125,364,000, according to public documents. The seller was Alecta, a Swedish occupational pension fund manager.[contextly_sidebar id=”OHx9IbxtfDnldEZKhhtdmSJpUuze7AdQ”]In the first half of 2016, Alecta made a strategic decision to to sell all of its directly owned real estate assets in the United States and United Kingdom. This portfolio included a total of six properties that are located in the San Francisco Bay Area. Three of these were acquired in December of 2016 by the Blackstone Group for $291,180,000. Now, a fourth property has sold, this one a grocery-anchored shopping center that has Lucky’s as its main tenant.
These assets are part of 22-property portfolio in the United States and 26 properties in the United Kingdom that the pension manager is selling. The initial plan was to sell the properties on a portfolio basis, however, there was opportunity for this to change depending on the offers that the seller received and the appetite of the potential buyers for the various types of real estate.
The listing agent on the sale was JLL. Peter Nicoletti, international director in the company’s New York office, lead the team’s marketing efforts. “Portfolio sale volumes are expected to trend upward in the year ahead as investors seek opportunities for an immediate global footprint. This portfolio offers them a unique position to do just that, while also capturing strong consistent returns substantially ahead of their competitive sets,” said Nicoletti, in a prepared statement.
Alecta has been pleased with its returns on its international portfolio. “Our foreign operations have been extremely successful in consistently generating above average returns but they have always been a bit of an organizational anomaly in our streamlined business, which prioritizes economies of scale within our investment strategy. The current strong demand for global real estate offers a good opportunity for us to take yet another step in our development towards our vision, to be the most efficient occupational pension fund in the world,” said Per Frennberg, chief investment officer of Alecta in a prepared statement.
Alecta is a fund with $85 billion of total assets under management.