PSP, La Caisse and NBIM Join TPG to Acquire ECHO Realty
PSP Investments, La Caisse, and Norges Bank Investment Management have committed capital alongside TPG to acquire ECHO Realty, an owner and operator of grocery-anchored retail centers, in a transaction valued at about $2 billion.
ECHO operates roughly 230 centers across Midwest and Southeast U.S. markets, anchored by grocery and convenience retailers that include Giant Eagle, Publix, Harris Teeter, Safeway, Acme Markets, Whole Foods and Couche-Tard’s GetGo. Founded in 2000, the company has acquired and developed more than 16 million square feet of neighborhood and regional centers and runs a brokerage arm, ECHO Retail.
The TPG-led group will work with ECHO’s management team to expand the platform into new markets and build out its leasing, property management and acquisition activity.
“Our partnership reflects TPG’s long-term thematic focus on resilient and sustainable sectors like grocery-anchored retail,” said Jacob Muller, a partner at TPG. The firm was drawn to the sector’s essential-use tenant base and plans to grow ECHO’s development and operating capabilities alongside its institutional partners, he added.
TPG manages $306 billion across private equity, credit, real estate and other strategies as of March 31. The firm’s real estate AUM grew reached $39 billion in the first quarter on more than $1 billion of inflows.
For PSP Investments, which manages C$299.7 billion ($209 billion) in net assets as of March 31, the investment lands in a real estate book that has been under pressure. Real estate made up 8.9% of the portfolio at year-end and returned 0.03% in fiscal 2025, weighed down by office and residential holdings that recorded steep valuation losses; the five-year return stood at 1.8%.
Simon Marc, senior vice president and global head of private equity and real estate investments, said the ECHO deal let the pension manager deploy capital at scale in an established platform tied to essential-use tenants, in line with its strategy of partnering with global operators.
La Caisse, which reported C$517 billion ($375 billion) in net assets as of Dec. 31, 2025, also enters the deal after a difficult year in real estate. Its property portfolio returned 0.2% against a 1.8% benchmark, as financing costs and weak performance in China offset a 4.4% gain on direct holdings in logistics, residential, office and retail assets. Transaction volume roughly doubled to nearly C$11 billion, and the five-year annualized return came in at 1.2%. Rana Ghorayeb, executive vice president and head of real estate, said the investment reflected a focus on needs-based segments with steady underlying demand.
Thomas Karet, ECHO’s founder and chief executive, said more than two decades of building necessity-based shopping centers pointed to durable demand for grocery-anchored retail, and that TPG’s backing would help the company expand in its core markets.
Advisors
Eastdil Secured and BMO Capital Markets were financial advisers to TPG, with Eastdil Secured also serving as debt placement agent, and Kirkland & Ellis was legal counsel. BofA Securities was financial adviser to ECHO, with Skadden, Arps, Slate, Meagher & Flom as legal counsel and Sterlington advising ECHO’s management.
Razak Musah Baba of IPE Real Assets also reports TPG, PSP Investments, La Caisse and NBIM buy ECHO Realty for $2bn:
TPG Real Estate has led an investor group, including Canadian investors Public Sector Pension Investment Board (PSP Investments) and La Caisse, and Norwegian sovereign wealth fund Norges Bank Investment Management, to acquire US grocery-anchored retail real estate firm ECHO Realty for $2bn (€1.72bn).
ECHO owns and operates approximately 230 retail centres located across the Midwest and Southeast US, anchored by grocery and convenience stores.
Thomas Karet, founder and CEO of ECHO, said: “Our more than two decades of building and operating neighborhood, necessity-based shopping destinations demonstrate the enduring demand for grocery-anchored retail close to home.
“With TPG’s investment and business building expertise, we are confident ECHO is well positioned to capitalise on demand for necessity-based shopping in key, high-performing markets. Together, we look forward to expanding our platform and continuing to deliver first-class experiences for shoppers and retailers.”
Jacob Muller, partner at TPG, said: “Our partnership reflects TPG’s long-term thematic focus on resilient and sustainable sectors like grocery-anchored retail. We are excited to partner with ECHO’s talented management team, as well as PSP Investments, La Caisse and Norges Bank Investment Management, to grow the ECHO platform, enhance its integrated development and operating capabilities, and deliver expanded, localised shopping offerings in markets across the US.”
Simon Marc, SVP and global head of private equity and real estate investments at PSP Investments, said: “Our real estate model is centred on forging partnerships with leading global operators and key strategic partners. This investment alongside TPG is a perfect example of our approach.
“The ECHO transaction allows us to deploy capital at scale in a high-quality, established platform, backing a sector of strong conviction. Grocery-anchored retail, underpinned by an essential-use tenant base, is a high-conviction opportunity that fits our long-term strategy.”
Rana Ghorayeb, EVP and head of real estate at La Caisse, said: “This transaction reflects our continued focus on reinvesting our capital into resilient, needs-based segments that demonstrate sustained underlying demand and stability.
“By partnering with TPG and other like-minded global institutional partners to acquire ECHO, we are strengthening our exposure to high-quality established platforms with attractive fundamentals, while enhancing the diversification of our portfolio.”
Eastdil Secured and BMO Capital Markets acted as financial advisors to TPG, with Eastdil Secured also acting as debt placement agent.
TPH, which led the consortium, issued a press release that was posted on PSP, La Caisse and NBIM's respective websites:
Investments from PSP Investments, La Caisse, and Norges Bank Investment Management will support TPG’s acquisition and future platform growth
PITTSBURGH, PA. – TPG Real Estate (“TPG”) today announced the acquisition of ECHO Realty (“ECHO”), a full-service owner and operator of best-in-class grocery-anchored retail real estate, in a transaction valued at approximately $2 billion. The transaction was led by TPG in partnership with leading global investment groups, including PSP Investments, La Caisse, and Norges Bank Investment Management.
ECHO owns and operates approximately 230 retail centers located across key Midwest and Southeast U.S. markets, anchored by grocery and convenience stores with premier tenant relationships, including Giant Eagle, Publix, Harris Teeter Supermarkets, Safeway, ACME Markets, Whole Foods Markets, and Alimentation Couche-Tard (GetGo). ECHO’s integrated capabilities span the full retail property lifecycle, from acquisitions and development to leasing and property management. Since inception, the platform has acquired and developed more than 16 million square feet of neighborhood and regional centers, leveraging deep relationships with first-tier grocers and retailers to create high-performing shopping destinations and essential community hubs.
“Our more than two decades of building and operating neighborhood, necessity-based shopping destinations demonstrate the enduring demand for grocery-anchored retail close to home,” said Thomas Karet, Founder and Chief Executive Officer of ECHO. “With TPG’s investment and business building expertise, we are confident ECHO is well-positioned to capitalize on demand for necessity-based shopping in key, high-performing markets. Together, we look forward to expanding our platform and continuing to deliver first-class experiences for shoppers and retailers.”
The TPG-led investor group will partner with ECHO’s management team to scale the business across existing and new markets, advancing acquisition initiatives while further strengthening leasing and property management capabilities, as well as ECHO Retail, ECHO’s boutique retail brokerage platform.
“Our partnership reflects TPG’s long-term thematic focus on resilient and sustainable sectors like grocery-anchored retail. We are excited to partner with ECHO’s talented management team, as well as PSP Investments, La Caisse, and Norges Bank Investment Management, to grow the ECHO platform, enhance its integrated development and operating capabilities, and deliver expanded, localized shopping offerings in markets across the U.S.,” said Jacob Muller, Partner at TPG.
“Our Real Estate model is centered on forging partnerships with leading global operators and key strategic partners. This investment alongside TPG is a perfect example of our approach," said Simon Marc, Senior Vice President and Global Head of Private Equity and Real Estate Investments at PSP Investments. “The ECHO transaction allows us to deploy capital at scale in a high-quality, established platform, backing a sector of strong conviction. Grocery-anchored retail, underpinned by an essential-use tenant base, is a high-conviction opportunity that fits our long-term strategy."
“This transaction reflects our continued focus on reinvesting our capital into resilient, needs-based segments that demonstrate sustained underlying demand and stability,” said Rana Ghorayeb, Executive Vice-President and Head of Real Estate at La Caisse. “By partnering with TPG and other like-minded global institutional partners to acquire ECHO, we are strengthening our exposure to high-quality established platforms with attractive fundamentals, while enhancing the diversification of our portfolio.”
Eastdil Secured and BMO Capital Markets acted as financial advisors to TPG, with Eastdil Secured also acting as debt placement agent. Kirkland & Ellis LLP acted as legal counsel to TPG. BofA Securities acted as exclusive financial advisor to ECHO, and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal counsel to the company, alongside Sterlington PLLC, which acted as legal counsel to ECHO management.
About ECHO Realty
Founded in 2000, ECHO Realty is a full-service owner and operator of commercial real estate. With a singular focus on grocery-anchored retail honed over more than a quarter of a century of experience, ECHO operates more than 230 centers across the United States and leverages deep relationships with grocers and retailers to cultivate high-performing shopping destinations.
About TPG
TPG is a leading global alternative asset management firm, founded in San Francisco in 1992, with $306 billion of assets under management and investment and operational teams around the world. TPG invests across a broadly diversified set of strategies, including private equity, impact, credit, real estate, and market solutions, and our unique strategy is driven by collaboration, innovation, and inclusion. Our teams combine deep product and sector experience with broad capabilities and expertise to develop differentiated insights and add value for our fund investors, portfolio companies, management teams, and communities.
About PSP Investments
The Public Sector Pension Investment Board (PSP Investments) is one of Canada’s largest pension investors with $299.7 billion of net assets under management as of March 31, 2025. It manages a diversified global portfolio composed of investments in capital markets, private equity, real estate, infrastructure, natural resources, and credit investments. Established in 1999, PSP Investments manages and invests amounts transferred to it by the Government of Canada for the pension plans of the federal public service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force. Headquartered in Ottawa, PSP Investments has its principal business office in Montréal and offices in New York, London and Hong Kong. For more information, visit investpsp.com or follow us on LinkedIn.
About La Caisse
For more than 60 years, La Caisse has invested with a dual mandate: generate optimal long-term returns for its 48 depositors, who represent over six million Quebecers, while contributing to Québec’s economic development.
As a global investment group, La Caisse is active in major financial markets, private equity, infrastructure, real estate and private credit. As at December 31, 2025, its net assets totalled CAD 517 billion. Learn more at LaCaisse.com, LinkedIn and Instagram.
La Caisse is a registered trademark of Caisse de dépôt et placement du Québec that is protected in Canada and other jurisdictions and licensed for use by its subsidiaries.
About Norges Bank Investment Management
Norges Bank Investment Management manages the Norwegian Government Pension Fund Global. With assets worth approximately 21,000 billion Norwegian kroner (around 2,100 billion US dollars), the fund is invested in international equity and fixed-income markets, as well as real estate and renewable energy infrastructure. Its purpose is to ensure responsible, long-term management of revenues from Norway's oil and gas resources so that this wealth benefits both current and future generations. It seeks to achieve the highest possible return in a safe, efficient, responsible and transparent manner, within government guidelines.
Alright, this deal was announced last week, and it's a big one in the institutional real estate space.
TPG led the deal and PSP, La Caisse and NBIM co-invested alongside it.
As stated in the TPG press release above:
ECHO owns and operates approximately 230 retail centers located across key Midwest and Southeast U.S. markets, anchored by grocery and convenience stores with premier tenant relationships, including Giant Eagle, Publix, Harris Teeter Supermarkets, Safeway, ACME Markets, Whole Foods Markets, and Alimentation Couche-Tard (GetGo). ECHO’s integrated capabilities span the full retail property lifecycle, from acquisitions and development to leasing and property management. Since inception, the platform has acquired and developed more than 16 million square feet of neighborhood and regional centers, leveraging deep relationships with first-tier grocers and retailers to create high-performing shopping destinations and essential community hubs.
These are what I call "sticky" anchor tenants when it comes to grocery and convenience retailers, which makes this deal more of a less cyclical/ steady cash flow type of real estate deal (perfect for when the cycle turns south as the economy slows).
Simon Marc, who is now Senior Vice President and Global Head of Private Equity and Real Estate Investments, notes this in the deal:
“The ECHO transaction allows us to deploy capital at scale in a high-quality, established platform, backing a sector of strong conviction. Grocery-anchored retail, underpinned by an essential-use tenant base, is a high-conviction opportunity that fits our long-term strategy."
Interestingly, in a first at the Maple 8 funds, PSP merged Private Equity and Real Estate to focus on partnerships and deploying capital at scale.
What this tells me is PSP is no longer doing real estate deals on its own like back in my days. They're going to be co-investing alongside top strategic partners to deploy capital there, much like they do in private equity.
There are pros and cons to this approach, but it's the one they chose, and PSP's Board approved this new expanded role for Simon Marc, so I'm sure there were good reasons for doing so.
Partnerships are critical for everyone, including La Caisse and NBIM, which are also taking part in this deal.
Rana Ghorayeb, Executive Vice-President and Head of Real Estate at La Caisse, echoed similar things to Simon in her statement:
“This transaction reflects our continued focus on reinvesting our capital into resilient, needs-based segments that demonstrate sustained underlying demand and stability. By partnering with TPG and other like-minded global institutional partners to acquire ECHO, we are strengthening our exposure to high-quality established platforms with attractive fundamentals, while enhancing the diversification of our portfolio.”
Lastly, the first article above notes that both PSP and La Caisse have experienced difficulties in real estate since the pandemic, which is true and a big reason why they significantly shrank their headcount there.
Hopefully, that asset class is stabilizing and coming back stronger in the years ahead.
That all remains to be seen.
Below, in a period of dislocation, how can real estate investors differentiate themselves? Watch and read more from Co-Heads of TPG Real Estate Kelvin Davis and Avi Banyasz in the latest edition of The TPG Take as they discuss how they find opportunity despite economic uncertainty (April, 2025).
Also, listen to Thomas Karet, founder and CEO of ECHO Realty, and others explain their approach in grocery-anchored shopping centers.
Bottom line: This is a great investment and if you listen to the second clip, you'll understand why.
Comments
Post a Comment