Property investment manager Nuveen Real Estate has raised over $480 million for two of its Asia Pacific strategies, according to media reports.
It is said to have secured more than $420 million for the Asia Pacific Cities platform from eight European investors, and another $60 million for its China Outlet Mall Fund to close the vehicle at $630 million.
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Nuveen Real Estate’s Asia Pacific Cities platform would probably receive additional significant commitment before the end of this year, PERENews reported, adding that the vehicle is expected to generate a return of 7-10 percent per annum after tax and before fees.
The $2-billion mandate, which was launched in 2018, received an initial co-investment of $200 million from its parent organisation, Teachers Insurance and Annuity Association of America (TIAA), according to the fund’s establishment announcement.
It has recently acquired a 50 per cent stake of Odawara Logistics in Greater Tokyo for $230 million, according to PERENews.
The transaction followed the platform’s first acquisition of an office asset in Sydney in late 2018 and a logistics property in Seoul in August this year.
With the latest purchase, it is understood that the vehicle has deployed more than half the capital raised and is reportedly planning its new investment in a multifamily portfolio in early 2020.
“The healthy amount of capital that we have raised means that we now have a queue of equity ready to deploy into our carefully selected markets and allows us the flexibility to continue to diversify across asset classes and geographies,” IPE Real Assets quoted Nuveen Real Estate’s managing director, Louise Kavanagh, as saying.
The Asia Pacific Cities platform focuses on office, retail, industrial and residential assets across 17 principal and progressive cities in the region, including Tokyo, Sydney, Brisbane, Singapore and Seoul.
Meanwhile, Nuveen Real Estate’s China Outlet Mall Fund was launched in 2017 with an initial close of $550 million from Allianz Real Estate, Gaw Capital Partners and TIAA General Account. Allianz Real Estate had said that the fund targeted to raise $750 million.
Last month, Nuveen Real Estate appointed Nick Evans as its permanent head of Asia Pacific, after he was promoted to lead the Asia Pacific Cities platform on an interim basis, Mingtiandi reported.
“The outlook heading into 2020 Asia Pacific’s is showing clearer signs of improvement after the significant headwinds for Asia Pacific’s growth landscape in 2019,” said Harry Tan, the firm’s head of APAC research, pointing that the growth momentum will likely strengthen visibly across the region in the second half of next year, driven by loosening monetary policies.
Nuveen Real Estate was rebranded from TH Real Estate in 2019, to consolidate under the TIAA-controlled investment manager Nuveen.
Nuveen had assets under management of $1 trillion as of the end of September 2019, in which real estate investments accounted for $129 billion.