Another institutional investor is betting on the strength of the U.S. retail real estate market.

Toronto-based Oxford Properties, the real estate arm of the Ontario Municipal Employees' Retirement System, acquired a pair of Texas power centers in partnership with Chicago-based retail investor Pine Tree for $250M, PERE reported.

The deal is Oxford's first U.S. retail acquisition, and it represents the beginning of a larger strategy. Oxford Head of U.S. Investments Ankit Bhatt told PERE the deal is “an exciting milestone for Oxford as we enter the U.S. open-air retail sector alongside a proven best-in-class operator in PineTree.”

“By acquiring these retail centers, Oxford creates a foundation for growth in a new sector, allowing us to leverage our global retail expertise to optimize tenant mix and drive performance,” Bhatt said in a statement to the publication.

Oxford's first U.S. shopping centers are the 633K SF Wolf Ranch Town Center in Georgetown and the 386K SF Lakeline Plaza in Cedar Park, both in the Austin area. They are leased to big-box retailers including Target, Kohl's, Best Buy, T.J. Maxx and Boot Barn.

The shopping center market has proven to be resilient despite economic issues like tariffs and shaky consumer sentiment. Nationwide retail absorption turned positive last month with 323K SF of demand, while the $64.6B of investment volume over the prior 12 months was up 22% year-over-year, according to MSCI.

The nationwide retail vacancy rate was just 4.3% in the third quarter, according to JLL, and the 50M SF under construction is tracking far below historical averages.

This strength has led investors to pour more money into the sector. Also this week, Bain Capital announced it raised $1.6B through a joint venture with 11North to buy grocery-anchored retail. Earlier this month, a joint venture including Blackstone reached a $1.5B deal to acquire Alexander & Baldwin, a REIT that owns grocery-anchored shopping centers in Hawaii.