Nuveen Real Estate, one of the largest real estate investment managers globally with $130 billion of assets under management, has raised $660 million to launch its U.S. Cities Industrial Fund, an open-end core real estate investment vehicle that acquires and manages institutional quality industrial properties in select cities across the United States.
The first close reflects capital raised from a group of institutional investors in North America, Europe and Asia-Pacific, including a $150 million commitment from Nuveen’s parent, TIAA.
“The U.S. Cities Industrial Fund provides investors with broad-based logistics exposure while strategically concentrating investments in buildings that are closest to consumers and in markets with strong fundamental growth opportunities, together capitalizing on secular demand trends driven by e-commerce and urbanization,” said Brian Tilton, Managing Director, Portfolio Manager of the fund.
Concurrently with its first close, the fund acquired a $1.3 billion state-of-the-art seed portfolio comprised of 45 well-leased, Class A buildings totalling approximately 11.4 million square feet located in 12 strategic U.S. logistics markets, consistent with the Fund’s income-oriented strategy.
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The U.S. Cities Industrial Fund is part of Nuveen Real Estate’s Global Resilient Series of open-end, core investment funds which aim to capitalize on long-term, structural real estate themes and demographic megatrends by investing in dynamic and resilient cities to achieve diversification, income and long-term capital growth. The Series, which provides investors the opportunity to efficiently customize their core allocations to the four primary U.S. property sectors – Multifamily, Retail, Office and Industrial – targets an investment universe of approximately 35 ‘tomorrow’s world cities’ in the U.S., which have been identified through Nuveen’s proprietary cities to best determine the most “future-proofed” locations that are best positioned to benefit from long-term structural megatrends, including demographic change, urbanization and technology.
“We are experiencing strong interest in our Global Resilient Series of funds, which give investors exposure to global diversified core real estate with flexibility to customize allocations to regions or sectors, such as industrial and multifamily,” said Wendy Pryce, Managing Director, Real Estate Distribution Specialist for Nuveen.
Nuveen Real Estate has been investing in the industrial sector since 1953 and currently manages approximately $16.9 billion of logistics investments globally. The firm’s U.S. industrial holdings now approximate $13.2 billion across both equity and debt investments with exposure to 247.2 million square feet in the U.S., providing significant market knowledge and presence.
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