31 August 2015 – Expansión
This transaction will create an asset portfolio of 4 billion in Europe
TIAA-CREF, owner of TH Real Estate, considers entering Madrid office market with a new investment fund that it created along with two Swedish pension funds. This undertaking, which will focus on different European cities, aims to create a portfolio of assets worth more than 4 billion.
For now, the fund already has an initial platform valued at 2.2 billion euros, which consists of assets given by the three investors and totals 258,000 square meters of core office space in UK, France and Germany.
Among the 15 current assets (nine provided by TIAA General Account and six by the Swedish public funds, AP1 and AP2), stand out buildings like the One Kingdom Street in London, Paris and Tour Areva in Atlantic Haus in Hamburg.
Thus, the company will start an active investment program with new capital to make an additional investment of around 2 billion euros over the next three years.
The new deal will mainly focus on core investments in first-tier cities such as London, Paris, Munich, Hamburg, Frankfurt and Berlin. In addition, the investment program will focus on value-added opportunities, such as leases, reforms and developments in this classification of cities. On the other hand, they will also seek core investments consolidated in cities such as Madrid, Milan and Amsterdam, among others.
The aim of these operations by the financial services firm and the two funds, is to create “one of the most important in Europe investment platforms.”
TH Real Estate, responsible for bringing the parties together, has created the platform and will manage the transaction on behalf of the investors, providing investment services and asset management.
The investment fund manager specializing in real estate, which started its journey in April 2014 after merging with TIAA-CREF manages approximately 25 billion euros in 50 funds investing in retail, office, logistics and real estate debt.
Original story: Expansión
Translation: Lee La