CINCINNATI, May 14, 2015 /PRNewswire/ -- Phillips Edison & Company ("PECO" or the "Company"), a fully integrated real estate company with a national platform of shopping centers, today announced the division of its Strategic Investment and Net Lease Investment business units into a standalone company called PECO Real Estate Partners ("PREP"). PREP will focus on investing in single-tenant retail, power and lifestyle centers, enclosed malls and mixed-use retail projects, while PECO will focus exclusively on growing and enhancing the value of its grocery-anchored shopping center portfolio. The division streamlines PECO's business by creating two strong, independent companies with distinct investment strategies, growth profiles and asset types.
Jeff Edison will continue in his role as Principal and Chief Executive Officer of PECO, and will be responsible for overseeing the Company's strategic direction and day-to-day business operations. Mike Phillips, who previously served as Principal and President of PECO, will help lead PREP as Principal and Chief Executive Officer. Mr. Phillips will remain involved in PECO as a partner and investor, reflecting his strong belief in the Company's long-term growth prospects.
"We founded the company in 1991 with a focus on grocery-anchored shopping centers. This strategic decision is something we have contemplated for some time as a way to streamline PECO's business by returning to an exclusive focus on our core competency: investing in grocery-anchored shopping centers," said Mr. Edison. "We look forward to further building our portfolio of grocery-anchored shopping centers and identifying additional opportunities to create incremental value for our investors."
PREP has appointed commercial real estate industry veteran Barry McGowan as President. Mr. McGowan joins PREP from Lend Lease Real Estate Investments and its affiliate GLL Real Estate Partners, where he spent 12 years as Principal and Managing Director. Mr. McGowan, who brings to PREP more than 30 years of experience working for established real estate companies including Cornerstone Properties, Koll Company and CBRE, will work closely with Mr. Phillips to run the business, identify strategic investment opportunities and accelerate PREP's growth.
"I look forward to bringing my experience and expertise to PREP to acquire different retail asset types that are operationally complex, where we can optimize retail value through our proven operating platform," said Mr. Phillips. "Adding a seasoned real estate professional like Barry – who has touched on nearly every aspect of real estate investment throughout his distinguished career – positions the enterprise well for long-term success. We plan to leverage his longstanding industry relationships to attract additional talent and source new business opportunities."
Creating Two Great Standalone Companies
Phillips Edison & Company (PECO)
PECO will focus all of its efforts on its national portfolio of more than 270 grocery-anchored shopping centers located in trade areas that exhibit favorable long-term real estate fundamentals. PECO, which is led by a highly experienced team of proven real estate operators, has demonstrated a track record of growth through acquisitions and will continue to focus on identifying accretive acquisition opportunities. PECO also has a history of successfully unlocking embedded value within its portfolio through redevelopment and repositioning initiatives.
PECO Real Estate Partners (PREP)
PREP, which combines PECO's former Strategic Investment and Net Lease Investment divisions, will focus on the acquisition, repositioning and management of single-tenant retail, power and lifestyle centers, enclosed malls and mixed-use retail projects. With a legacy of transforming retail properties, PREP has the expertise and experience to optimize property value. PREP identifies prime locations with development or redevelopment opportunities through a focused investment strategy.
Experienced Executives Leading Both Companies
Mr. Edison will continue to serve as Principal and Chief Executive Officer of PECO, and will be supported by a senior management team that includes Bob Myers, Chief Operating Officer; Devin Murphy, Chief Financial Officer; Hal Scudder, Chief Investment Officer; Tanya Brady, SVP, General Counsel; and Jennifer Robison, Chief Accounting Officer. PREP's senior management team consists of Mr. Phillips as Principal and Chief Executive Officer, Mr. McGowan as President, Sara Brennan as Chief Operating Officer and Jim Shipman as Senior Vice President, Net Lease Investments. David Birdsall, who has led the Strategic Investment Funds for the last 8 years, will continue to lead that strategy while also taking on the role of Chief Investment Officer.
About Phillips Edison & Company
Since 1991, Phillips Edison & Company has focused on the grocery-anchored shopping center sector. The company has a fully integrated in-house operating platform built on market leading expertise designed to optimize property value and consistently deliver a great shopping experience. Led by a veteran management team, Phillips Edison's operating platform provides retail services including acquisition, redevelopment, leasing and management of grocery-anchored retail centers. The company's portfolio currently includes a national footprint of retail properties. The company has corporate offices in Cincinnati, Salt Lake City, New York City and Atlanta. For more information, please visit www.phillipsedison.com or connect with us on LinkedIn.
About PECO Real Estate Partners
Launched in 2014, PECO Real Estate Partners (PREP) is a fully integrated real estate operating and asset management company focused on the acquisition, development and repositioning of power and lifestyle centers, enclosed malls, mixed-use retail projects and single-tenant developments. The company has expertise in every discipline of retail shopping center operation and management. Through the execution of a focused investment strategy, PREP intends to identify optimal target locations and leverage its management team's ability to source and capitalize on development and redevelopment opportunities through their long-standing relationships with brokers, property owners and retail tenants. For more information about PREP, please visit www.pecorep.com.
SOURCE Phillips Edison & Company