Investment board closes joint venture fund.The CPP cpp - C preprocessor. Investment Board and TIAA-CREF TIAA-CREF Teachers Insurance and Annuity Association - College Retirement Equities Fund Asset Management announced that the CPP Investment Board has closed a US$500 million real estate transaction that includes a US$300 million investment in a joint venture which will invest in Class A office properties in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , and a US$200 million investment in a TIAA-CREF Asset Management direct real estate investment strategy. All assets will be managed by the Global Real Estate group of TIAACREF Asset Management. The total commitment to the joint venture is US$612 million in equity of which TIAA-CREF will contribute 51% (US$312 million) and will provide asset management services, and the CPP Investment Board will contribute 49% (US$300 million). Including debt, the gross value of the venture is expected to reach approximately US$1.5 billion. TIAA-CREF has seeded the joint venture with two suburban Class A office properties in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). , near San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden , and in McLean, Virginia McLean is an unincorporated community located in Fairfax County in Northern Virginia. A small geographic area along Chain Bridge Road in Arlington County has a 22101 zip code and is also part of McLean. , just outside of Washington, D.C. Going forward, the joint venture will invest in large cap, Class A office properties with a gross value ranging from US$100 million to US$200 million. The investment focus is on strategic acquisitions of partially leased office properties in stable or recovering metropolitan areas with at least 500,000 residents. In addition, the CPP Investment Board has made a US$200 million commitment to a TIAA-CREF Asset Management direct real estate investment strategy which primarily focuses on institutional-quality U.S. real estate assets. "We are pleased to partner with TIAA-CREF Asset Management which is a knowledgeable, long-term investor Long-term investor A person who makes investments for a period of at least five years in order to finance his or her long-term goals. in the U.S. real estate market," said Graeme Eadie, senior vice-president of Real Estate Investments at the CPP Investment Board. "Our investment significantly increases our exposure in the U.S. real estate market which supports our focus of diversifying the overall CPP Investment Board portfolio by product type and geography." "We look forward to working with the CPP Investment Board, an institution which shares our long-term investment perspective," said Executive Vice President and Head of TIAA-CREF Asset Management, Scott C. Evans. "This partnership speaks to our commitment to building relationships with high quality institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. by providing investment solutions centered on our nearly 90 years of portfolio management experience." |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion