Phillips Edison & Company (PECO) has been an excellent steward of its investors' capital. PECO's Family of Funds has provided unique opportunities to invest with one of the nation's leading private real estate operating companies in the top-performing real estate sector of anchored retail centers. Opportunities exist for value creation, typically through the turnaround of under-performing assets or ground-up development. Phillips Edison excels at value creation by employing a superior operating platform with a national presence.
Since inception, investors have committed more than $650 million of equity in PECO's Family of Funds, including four PECO Opportunity Funds formed between 2000 and 2008 and our Strategic Investment Funds I and II, formed in 2007 and 2011.
In August 2010, the SEC issued registration effectiveness for Phillips Edison's first public offering. Phillips Edison-ARC Shopping Center REIT Inc. is a public, non-traded REIT focused on grocery-anchored shopping centers in stable or growing markets across the country. For more information about this exciting new fund, please visit www.phillipsedison-arc.com.
Strategic Investment Fund II (SIF II), our newest fund, closed in September 2011 with PECO Capital as the placement agent. SIF II raised $57 million from 245 accredited investors, including $16 million committed by Phillips Edison and Phillips Edison associates. Like SIF I, SIF II targets power centers, lifestyle centers and other retail or mixed-use developments that present opportunities for appropriate risk-adjusted returns. Control of properties may be achieved through direct acquisition or the purchase of notes, joint ventures or other controlling ownership structure. The goals of this fund are (1) To acquire existing retail and/or mixed-use properties at a significant discount to replacement cost with value-add potential or redevelopment challenges that enable us to enhance existing cash flow (2) Build a diversified portfolio of assets that will deliver risk-adjusted returns (3) Realize growth in value of assets upon sale, merger, IPO or refinance.
Our previous funds have included:
PECO Opportunity Fund (Fund I), formed in 2000, raised $20 million from more than 125 accredited investors. Fund I was used to acquire a portfolio of 14 value-added, anchored community shopping centers.
PECO Opportunity Fund II (A), formed in 2002, raised $30 million from more than 200 accredited investors. Over 85% of the Fund I investors recommitted to Fund II.
PECO Opportunity Fund II (B), formed in 2003, raised $30 million in conjunction with the acquisition of AEGIS Realty, a public REIT, for $180 million. Fund II (A) and (B) were used to acquire a portfolio of 33 value-added, anchored community shopping centers.
Phillips Edison Convertible Debt, formed in 2004, raised $44 million from 50 accredited investors to provide capital for the consolidation of Phillips Edison Limited Partnership and 12 value-added anchored community shopping centers.
Phillips Edison Shopping Center Fund III, formed in 2005 with Deutsche Bank as the placement agent, raised $275 million from domestic and international institutional investors, including Phillips Edison's investment of $23 million as a limited partner. Fund III was used to acquire a billion-dollar portfolio of 116 value-added, anchored community shopping centers, encompassing over 12 million square feet.
Phillips Edison Strategic Investment Fund I (SIF I), formed in 2007 with PECO Capital as the placement agent, raised $65 million of equity from 173 accredited investors, including $14 million committed by Phillips Edison and Phillips Edison Associates. SIF I was used to acquire two Target-anchored power centers; one ground-up shopping center development anchored by Kohl's, TJ Maxx and Michaels; one large land parcel for future development; preferred equity in an institutional fund; and two Walgreens.
Phillips Edison Shopping Center Fund IV, formed in 2008 with PECO Capital as the placement agent, raised $301 million from domestic and international institutional investors, including Phillips Edison's investment of $25 million as a limited partner. Fund IV is acquiring value-added anchored community shopping centers.
To learn more about other current or upcoming opportunities, please contact:
Sigrid Campbell
Vice President, PECO Capital
(513) 619-5051
scampbell@phillipsedison.com
