Asana Partners, Norges Bank Form $500M Retail JV

Asana Partners and Norges Bank Investment Management have formed Asana Partners Strategic Partners I, a joint venture focused on core and core-plus neighborhood retail assets, the companies announced on Tuesday. Norges invested $500 million in equity for the partnership.

The venture’s first investment will be a 50 percent interest in a portfolio of premium grocery-anchored retail centers. It will also target unanchored centers, street retail and mixed-use properties in markets with strong demographics and tenant demand. In this venture, Norges will own a 49 percent stake, according to Reuters.

Asana, which manages 10.3 million square feet of retail assets, said the partnership will complement its existing Asana Partners Select Fund, an investment vehicle focused on core and core-plus investments.

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The company is actively investing in retail assets across the country. Last October, Asana purchased Red Bird Shopping Center, a 92,089-square-foot property in Miami, from The Brandon Co. for $62.1 million. In February, the company acquired Seacliff Village, a 253,234-square-foot center in Huntington Beach, Calif., from Barings for $151 million. The firm financed the acquisition with an $83.8 million loan.

For this partnership with Norges, King & Spalding LLP acted as legal advisor to Asana Partners while Clifford Chance was the legal advisor for Norges.

Norges continues U.S. expansion

This partnership represents another move for Norges to diversify its investments across different sectors. In June, the firm partnered with PSP Investments and La Caisse to acquire ECHO Realty. The deal was valued at $2 billion.

While the venture expands Norges’ retail exposure, the sovereign wealth fund continues to diversify its U.S. real estate portfolio. In New York, the company owns 11 Times Square in Manhattan along with joint venture partners PGIM Real Estate and SJP Properties Co. In October, a joint venture between Norges, PGIM Real Estate and SJP Properties refinanced Manhattan’s 11 Times Square with a $507 million loan.