Canada’s largest pension plan backs Nuveen’s Australian RE debt fund
Nuveen’s Australian commercial real estate debt strategy has secured an A$300m (£144m) investment from the Canadian Pension Plan Investment Board (CPP Investments), bringing total commitments to more than A$650m.
The Canadian pension plan, through its subsidiary CPPIB Credit Investments, joins existing investors Teachers Insurance and Annuity Association of America (TIAA) and Temasek.
Nuveen said that the fund, which has now reached second close, is expected to exceed A$1bn in total assets under management (AUM) including capital approved for co-investments.
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The strategy is already more than 40 per cent deployed, focusing on senior and junior loans secured by prime real estate in Australia.
There is a preference for industrial, logistics and residential sectors, with a selective approach to retail and office space across major cities in the country.
The strategy is led by Dugald Marr, Nuveen’s head of debt Australia and New Zealand.
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“This is another milestone for the strategy,” said Andrew Kleinig, head of Australia and the global client group for South East Asia at Nuveen.
“With CPP Investments’ commitment, we will continue our focus on strategic, in-depth partnerships with the highest calibre of investors. We are excited to work with a like-minded partner who also shares a high conviction on the asset class.
“CPP Investments has provided significant value-add as a strategic investor, ensuring long-term success and growth of the partnership. It showcases Nuveen’s pedigree in real estate investment and our ability to bring regionally tailored solutions across both equity and debt platforms. 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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Raymond Chan, managing director and head of APAC Credit at CPP Investments, said: “Australia is one of our key markets in Asia Pacific and this transaction marks an important milestone for our credit strategy in the region. The investment builds upon our extensive market research and insights from our successful investments in Australia.
“Leveraging Nuveen’s strong local network and capabilities, this partnership enables us to tap into attractive real estate debt investments in Australia and further augment our credit program in the region. These opportunities offer stability and attractive yields amid global volatility, contributing to long-term returns for the CPP fund.”
Nuveen is a global asset manager with over US$1.3tn (£1tn) AUM.
