Summit Properties USA (Summit), a subsidiary of UK-based Summit Properties Ltd., has successfully completed the acquisition and consolidation of its retail center portfolio in the U.S., valued at around $700 million. This achievement marks a significant step in the company’s strategy to enhance and expand its commercial property assets across the United States, with a strong emphasis on quality, growth, and long-term value.
Over the past several quarters, Summit Properties USA has strategically invested nearly $700 million to acquire a diverse range of shopping centers, primarily situated on the East Coast and in the Mid-West. Looking ahead, the company plans to channel hundreds of millions more into developing and repositioning these properties. The focus will be on capital improvements, redevelopment initiatives, and attracting prominent tenants, including top retail chains and lifestyle brands. This commitment to upgrading the portfolio aims to increase the value of both individual assets and the portfolio as a whole, which currently encompasses approximately 13 million square feet of leasable space across 1,400 acres.
Historically, Summit’s retail centers were managed by an external firm, but with the acquisition phase now complete, the company is transitioning to direct management through the launch of an internal management platform. This change is expected to streamline operations, improve asset quality, and better position the properties in the market by allowing for a more hands-on approach and quicker responses to emerging opportunities. The new internal management platform will also strengthen tenant relations and optimize the leasing process, creating a more efficient and tenant-friendly experience.
This transition is a vital element of Summit’s broader strategy, which emphasizes portfolio aggregation and value enhancement through active internal asset management, equity investments, and potential M&A activities. This approach mirrors the company’s successful track record in Germany over the past decade. In 2021, Summit capitalized on part of its German portfolio, realizing over one billion euros, which generated substantial returns and showcased its ability to transform assets into an institutional portfolio by acquiring properties from distressed sellers, building a critical mass of assets, and significantly investing in their development and enhancement.
Summit Group is controlled by its major shareholder, Zohar Levy, along with other prominent international institutional investors, and includes group companies that were previously listed on stock exchanges in London, Frankfurt, and Luxembourg.
Commenting on this milestone, Zohar Levy stated, “Today, we celebrate the successful completion of the acquisition and aggregation phase of our retail portfolio. We see immense potential in transforming our retail centers into flagship assets within their local communities. Our aim is to attract anchor tenants, including leisure and entertainment, alongside leading national retail tenants. The recent establishment of our internal management platform will accelerate development and enhancement initiatives, enabling optimal management of the centers and benefiting both the tenants and the company’s efficiency,”.
Properties include:
- Triangle Town Center in Raleigh, NC
- Animas Valley in Farmington, NM
- Ashville Mall in Ashville NC
- Cumberland Mall in Vineland, NJ
- North Town Mall in Spokane WA
- Crossroads in Portage, MI
- River Hills in Mankato, MN
With the acquisition phase now behind us and a solid management platform in place, Summit Properties USA is primed for the next stage of growth. The company is on track to solidify its position as a leader in the retail real estate sector, offering value through strategic investments, innovative management practices, and an unwavering commitment to excellence.
