PSP Investments and Nuveen Real Estate Launch a $790M US Retail JV
The Public Sector Pension Investment Board has signed a deal to launch a joint venture with Nuveen Real Estate to invest in open-air shopping centres in the United States.
The partnership is starting with a US$790-million portfolio.
PSP Investments says the strategy is demographically driven, focusing on open-air shopping centres anchored by grocers, necessity-based retailers, and essential services.
It is targeting U.S. metro areas with strong population growth, rising household incomes and high barriers to entry, where retailers are seeking to expand.
To date, PSP Investments and Nuveen say they have closed deals on 19 assets in Virginia, Arizona, Florida, Minnesota, Texas, California, Colorado, and Washington.
PSP Investments invests money for the pension plans of the federal public service, the Canadian Forces, the Royal Canadian Mounted Police, and the Reserve Force.
Amit Chowdry of Pulse 2.0 also reports PSP Investments and Nuveen Real Estate launch a $790 million US Retail joint venture:
PSP Investments and Nuveen Real Estate have launched a joint venture with an initial $790 million investment focused on acquiring open-air shopping centers across the United States.
The strategy centers on shopping centers anchored by dominant grocers, necessity-based retailers, and essential services. The partners are targeting U.S. metropolitan areas with strong population growth, rising household incomes, and high barriers to new development.
To date, the joint venture has acquired 19 properties totaling approximately 3 million square feet across Virginia, Arizona, Florida, Minnesota, Texas, California, Colorado, and Washington.
Among the individual acquisitions is The Shoppes of Lorton Valley, a 110,000-square-foot grocery-anchored neighborhood center in Lorton, Virginia. The property is anchored by Giant and serves the broader Washington, D.C. market.
The venture has also acquired Las Tiendas Village in Chandler, Arizona, a 188,000-square-foot community shopping center in the Phoenix-Mesa-Chandler metropolitan area. The property is anchored by Sprouts and includes additional national and regional retailers.
PSP Investments and Nuveen have also completed two larger portfolio transactions as part of the strategy. One portfolio includes six open-air shopping centers totaling approximately 801,000 square feet across the Fort Lauderdale, San Diego, Orange County, Dallas-Fort Worth, Minneapolis, and Los Angeles markets.
A second portfolio consists of 11 properties totaling approximately 1.9 million square feet across California, Colorado, and Washington. The assets are generally positioned near major corridors or high-traffic intersections intended to provide convenient access for daily-needs shoppers.
The investment approach reflects a focus on segments of retail real estate that the partners believe can generate relatively durable demand across economic cycles. Grocery-anchored and necessity-based shopping centers have remained a key area of institutional interest because consumers continue to visit them for food, household products, services, and other recurring needs.
PSP Investments manages approximately $320.6 billion in net assets, while Nuveen Real Estate manages approximately $135 billion in real estate assets globally.
The joint venture combines PSP Investments’ long-term institutional capital with Nuveen’s property sourcing, operating, and asset management capabilities as the partners continue to build their U.S. open-air retail portfolio.
KEY QUOTES:
“We have been reshaping our U.S. retail exposure around a much tighter definition of the sector: open-air centers anchored by grocers and daily-needs tenants, which aims to deliver a steady, inflation-linked income for our portfolio. Nuveen brings the sourcing reach and operating depth this kind of portfolio demands, and what we own today is exactly the retail exposure our strategy calls for.”
Julien Roy-Décary, Managing Director, Real Estate Investments, Americas At PSP Investments
“Necessity-based retail has demonstrated remarkable resilience through various cycles, underpinned by consistent consumer demand for essential goods and services. Coupled with PSP Investments’ long-term capital, this venture is designed to deliver both durable income and long-term value creation. We’re confident this combination of scale, relationships, and local execution positions us strongly in one of the most stable and defensive segments of retail real estate.”
Brian Wallick, Portfolio Manager, Retail At Nuveen Real Estate
CityBiz also reports PSP Investments and Nuveen Real Estate launch a $790M US Retail Joint Venture:
The Public Sector Pension Investment Board (PSP Investments) and Nuveen Real Estate have launched a joint venture with $790 million in initial investments to acquire open-air shopping centers across the United States, targeting grocery-anchored properties and retail destinations focused on everyday consumer needs.
The partnership has already completed acquisitions totaling approximately 3 million square feet across 19 properties in Virginia, Arizona, Florida, Minnesota, Texas, California, Colorado and Washington. The investments reflect a strategy centered on shopping centers with established grocery tenants, essential services and retailers that generate consistent customer traffic.
The joint venture is targeting metropolitan markets with population growth, rising household incomes and significant barriers to new retail development. It is also focusing on locations where established retailers are expanding, creating opportunities for leasing demand and long-term property income.
Among the properties acquired is The Shoppes of Lorton Valley, a 110,000-square-foot neighborhood shopping center in Lorton, Virginia, a Washington, D.C., suburb. The property is anchored by Giant, a major grocery operator in the Washington metropolitan area.
The venture also acquired Las Tiendas Village, a 188,000-square-foot community shopping center in Chandler, Arizona, within the Phoenix-Mesa-Chandler metropolitan area. The property is anchored by Sprouts, a specialty grocery retailer, and includes additional tenants with established credit profiles.
Beyond the individual property acquisitions, PSP Investments and Nuveen have completed two portfolio transactions that expand the venture’s geographic reach.
One portfolio includes six open-air shopping centers totaling approximately 801,000 square feet across the Fort Lauderdale, San Diego, Orange County, Dallas-Fort Worth, Minneapolis and Los Angeles markets. A second portfolio comprises 11 properties totaling approximately 1.9 million square feet in California, Colorado and Washington.
The properties are located along major commercial corridors or at high-traffic intersections, providing visibility and access for consumers shopping for groceries, household goods and other daily necessities.
The investment strategy reflects a more selective approach to retail real estate, emphasizing properties supported by recurring consumer spending rather than discretionary shopping. Grocery-anchored centers have attracted institutional interest because essential retail categories can maintain customer traffic through changing economic conditions.
“We have been reshaping our U.S. retail exposure around a much tighter definition of the sector: open-air centers anchored by grocers and daily-needs tenants, which aims to deliver a steady, inflation-linked income for our portfolio,” said Julien Roy-Décary, Managing Director, Real Estate Investments, Americas at PSP Investments.
Roy-Décary said Nuveen’s property sourcing capabilities and operating experience complement PSP Investments’ strategy of building a portfolio concentrated in necessity-based retail assets.
For Nuveen, the partnership combines its real estate investment and management platform with long-term institutional capital from one of Canada’s largest pension investors.
“Necessity-based retail has demonstrated remarkable resilience through various cycles, underpinned by consistent consumer demand for essential goods and services,” said Brian Wallick, Portfolio Manager, Retail at Nuveen Real Estate.
Wallick said the venture is structured to pursue recurring income and long-term property value through its investment scale, market relationships and local operating capabilities.
The partnership also provides PSP Investments with additional exposure to U.S. retail properties as it manages a diversified global investment portfolio spanning public markets, private equity, real estate, infrastructure, natural resources and credit.
Established in 1999, PSP Investments manages pension assets for Canada’s federal Public Service, Canadian Forces, Royal Canadian Mounted Police and Reserve Force. The organization reported $320.6 billion in net assets under management as of March 31, 2026. It is headquartered in Ottawa, with its principal business office in Montréal and additional offices in New York, London and Hong Kong.
Nuveen Real Estate manages approximately $135 billion in assets across public and private real estate investments, including debt and equity strategies. The firm has more than 90 years of real estate investment experience and a team of over 590 employees across more than 30 cities in the United States, Europe and Asia Pacific.
With its initial 19-property portfolio established, the joint venture gives both investors a sizable position in U.S. open-air retail real estate. Its emphasis on grocery anchors, essential services and growing metropolitan markets is intended to support stable occupancy, recurring rental income and long-term asset performance.
On Wednesday, PSP Investments and Nuveen Real Estate issued a press release stating they launched a joint venture with US$790 million in open-air shopping center investments acquired across the United States:
- Partnership Closes on US$790 million Initial Portfolio of Necessity-Based Retail Properties with Plans for Continued Growth
New York, Montréal (October 21, 2026) – The Public Sector Pension Investment Board (PSP Investments), one of Canada's largest pension investors, and Nuveen Real Estate, one of the largest real estate investment managers globally, today announced the launch of a joint venture with an initial investment of US$790 million to acquire open-air shopping centers across the United States.
The investment strategy is demographically driven, focusing on open-air shopping centers anchored by market or category dominant grocers, necessity-based retailers, and essential services that continue to demonstrate durable performance and resilient foot traffic. The joint venture targets U.S. metro areas with strong population growth, rising household incomes, and high barriers to entry, where well-capitalized retailers are actively seeking to expand.
To date, PSP Investments and Nuveen have closed on property acquisitions totaling 3 million square feet across 19 assets in Virginia, Arizona, Florida, Minnesota, Texas, California, Colorado, and Washington, in line with the joint venture's strategy. Notable acquisitions include:
- The Shoppes of Lorton Valley is a 110,000-square-foot grocery-anchored neighborhood center in the affluent Washington D.C. suburb of Lorton, Virginia, anchored by Giant, a dominant grocery chain in the Washington, D.C. area.
- Las Tiendas Village in Chandler, Arizona is a 188,000-square-foot community shopping center in the Phoenix-Mesa-Chandler metro, anchored by Sprouts, a leading specialty, organic grocery chain and complemented by high-credit retailers.
Beyond these individual acquisitions, the joint venture has also completed two larger portfolio acquisitions, adding meaningful scale and geographic diversification, while still maintaining the grocery-anchored and necessity-based thematic focus. The first portfolio consists of six open-air shopping centers spanning approximately 801,000 square feet across top MSAs including Fort Lauderdale, San Diego, Orange County, Dallas-Fort Worth, Minneapolis, and Los Angeles. The second is an 11-property portfolio totaling approximately 1.9 million square feet across California, Colorado, and Washington. All assets in the respective portfolios are positioned at a high-traffic intersection or along a major corridor, providing strong visibility and convenient access for daily-needs shoppers.
“We have been reshaping our U.S. retail exposure around a much tighter definition of the sector: open-air centers anchored by grocers and daily-needs tenants, which aims to deliver a steady, inflation-linked income for our portfolio," said Julien Roy-Décary, Managing Director, Real Estate Investments, Americas at PSP Investments. "Nuveen brings the sourcing reach and operating depth this kind of portfolio demands, and what we own today is exactly the retail exposure our strategy calls for."
“Necessity-based retail has demonstrated remarkable resilience through various cycles, underpinned by consistent consumer demand for essential goods and services,” said Brian Wallick, Portfolio Manager, Retail, Nuveen Real Estate. “Coupled with PSP Investments’ long-term capital, this venture is designed to deliver both durable income and long-term value creation. We’re confident this combination of scale, relationships, and local execution positions us strongly in one of the most stable and defensive segments of retail real estate.”
About PSP Investments
The Public Sector Pension Investment Board (PSP Investments) is one of Canada’s largest pension investors with $320.6 billion of net assets under management as of March 31, 2026. 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 Nuveen Real Estate
Nuveen Real Estate is one of the largest investment managers in the world with $135 billion of assets under management. Managing a suite of funds and mandates, across both public and private investments, and spanning both debt and equity across diverse geographies and investment styles, we provide access to a broad range of real estate investing opportunities. With over 90 years of real estate investing experience and more than 590 dedicated employees* located across 30+ cities throughout the United States, Europe and Asia Pacific, the platform offers global reach with deep sector expertise, seeking to provide investors access to high quality investments across the private real estate investment landscape. For further information, please visit us at nuveen.com/realestate.
* Nuveen Real Estate has 590+ dedicated professionals, including 340+ investment team members, and is supported by over 1,000 shared services employees across the broader Nuveen organization.
Source: Nuveen, 30 June 2026.
Another sizable real estate joint venture for PSP Investments in the United States.
Last month, I discussed how PSP and Ares formed a $2.4 billion US logistics venture (read my comment here).
In June, I discussed how PSP Investments, La Caisse, and Norges Bank Investment Management 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 (read my comment here).
Earlier this month, PSP sold Sunrise Senior Living in a US$1 billion deal (read my comment here).
What are these joint ventures and sales all about?
Well, it's all part of the shift in strategy at PSP where they are focusing more on strategic partners who will source, acquire and operate assets rather than buying assets directly.
PSP's CEO, Deborah Orida, appointed Simon Marc to head up Real Estate and use the same partnership model they use in Private Equity for that asset class.
PSP is providing the long-term capital, forming joint ventures with world-class partners that source, acquire and operate these assets.
The same shift has been going on at La Caisse under the leadership of Rana Ghorayeb.
Basically, the pandemic was a huge wake-up call for the real estate departments at all the large pension funds, the focus shifted more on logistics and multifamily and on partnering up with world-class partners to form joint ventures.
The pandemic is long gone. Office and Retail are coming back, but PSP's focus with this new joint venture with Nuveen Real Estate is very specific.
The investment strategy reflects a more selective approach to retail real estate, emphasizing properties supported by recurring consumer spending rather than discretionary shopping. Grocery-anchored centers have attracted institutional interest because essential retail categories can maintain customer traffic through changing economic conditions.
Julien Roy-Décary, Managing Director, Real Estate Investments, Americas at PSP Investments, sums it up well:
“We have been reshaping our U.S. retail exposure around a much tighter definition of the sector: open-air centers anchored by grocers and daily-needs tenants, which aims to deliver a steady, inflation-linked income for our portfolio. Nuveen brings the sourcing reach and operating depth this kind of portfolio demands, and what we own today is exactly the retail exposure our strategy calls for."
I have nothing more to add except to say the US economy remains very robust, retail sales beat expectations last month, and these open-air shopping centers with strong anchor tenants are doing exceptionally well (I've seen a few in Fort Lauderdale, one of the regions this JV is focusing on, and was impressed).
Below, Private real estate has long been a domain reserved for institutions and the ultra-wealthy. The Nuveen Global Cities Real Estate Fund is seeking to change that.
In this Fund in Focus, Shawn Lese, Chief Investment Officer and Head of Funds Management for Nuveen Real Estate, walks through the key differentiators of Nuveen’s approach, from local expertise and off-market deal flow to sector specialisation and dynamic portfolio allocation.
Note that this interview was recorded Wednesday, 10 September 2025, a little over a year ago.
I like this interview; listen to what he says about their approach. Nuveen Real Estate is a top real estate investor, and that's why PSP formed this Retail JV with them.
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