Nuveen closes Australian RE debt strategy with AUS$400m
Nuveen has closed its first commingled Australian commercial real estate debt strategy with more than AUS$400m (£201.77m).
Anchor investors include the Teachers Insurance and Annuity Association of America (TIAA) and Temasek, a global investment company headquartered in Singapore.
Nuveen said that additional investments are expected to follow as a number of global investors are currently in the process of completing their due diligence.
The strategy will invest in senior and junior secured real estate loan investments across Australia, with a focus on the industrial, logistics and residential sectors. It will also take a selective approach to retail, office and alternatives across major cities in Australia.
“We believe investment in Australian commercial real estate debt offers investors a compelling blend of stability, attractive yields and strong collateral protection,” said Dugald Marr, head of debt – Australia at Nuveen Real Estate.
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“Australia’s mature market, supported by robust economic foundations, strict regulatory requirements for banks and the need for more alternative capital sources provides a good foundation for long-term investment in this space. Our focus is institutional borrowers, conservative lending parameters and prime assets or projects in sectors that benefit most from Australia’s high population growth and limited supply.
“Those market fundamentals and strategy, coupled with Nuveen Real Estate’s extensive real estate debt platform, presents an enticing opportunity for institutions to diversify their portfolios whilst looking to achieve stable returns. Through continued partnerships with like-minded clients, we are excited to continue taking advantage of opportunities in Australasia and beyond.”
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Nuveen Real Estate’s global debt platform currently has over 55 dedicated specialists. All investments will be influenced and aligned to Nuveen Real Estate’s comprehensive responsible investment processes and ESG factor analysis.
“This milestone for the strategy, and partnership with such high calibre investors in the region, truly showcases Nuveen’s pedigree in real estate investment and our ability to bring regionally tailored solutions across both equity and debt platforms,” said Gracee Teo, head of South East Asia institutional at Nuveen.
“We believe Nuveen’s offering across real assets more broadly is well-positioned to help clients across Asia navigate volatility alongside managing their responsible investment goals.”
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