CINCINNATI – Phillips Edison & Co. (PECO) will separate its strategic investment and net lease investment business units from its grocery-anchored shopping center business. The new standalone company will be 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 aims to streamline PECO’s business by creating two independent companies with distinct investment strategies, growth profiles and asset types.
Jeff Edison will continue in his role as principal and CEO 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 CEO. Phillips will remain involved in PECO as a partner and investor.
“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,” says 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 its president. 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. McGowan has more than 30 years of experience working for real estate companies including Cornerstone Properties, Koll Co. and CBRE. He will work closely with Phillips to run the business, identify 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,” says 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.”
— Haisten Willis