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TH Real Estate has unveiled the U.S. Cities Fund series, a re-launch of the TIAA-CREF Core Property Fund LP that focuses on investments in retail, office, industrial and multifamily properties in top urban markets of the United States. The launch, which follows the March debut of the European Cities fund, is the first offering from the company’s recently unified real estate business and makes TH Real Estate the only investment manager to sponsor open-ended, core funds in each of the four main property sectors.
The U.S. Cities Funds provide investors with the option to invest in one single overarching master fund, offering exposure to all four sectors in one vehicle, or select exposure via four sector funds, which allow for customized sector allocation and the opportunity for enhanced diversification, liquidity and returns. The series of open-ended funds offer exposure to ‘core’ real estate properties that are well-located, well-leased and possess attractive current cash flows and strong tenant bases in growing urban markets. The introduction follows the launch earlier this year of TH Real Estate’s European Cities Fund, which seeks to provide investors with diversified and defensive income return and optimize long-term total return by investing only in ‘future-proof cities’ across Europe.
“We believe that highly-focused, sector-specific strategies and local execution are the keys to consistent outperformance in real estate investing,” said Randy Giraldo, managing director and portfolio manager for the U.S. Cities Funds. “Investors are increasingly seeking access to sector-specific core funds and now TH Real Estate offers investors the opportunity, with a single manager, to customize their exposure to the four main property sectors.”
The global city-based real estate strategy filters and scores cities through a proprietary system developed by TH Real Estate’s research team. It defines which cities are believed to be structurally positioned to provide the greatest and most consistent total return. This top down approach is augmented with best in class local execution. Across the globe, TH Real Estate has investment professionals imbedded in its target markets to efficiently source and manage transactions across a variety of strategies.
Concurrent with the launch of the U.S. Cities Fund series, TIAA Global Asset Management’s U.S. real estate operations are being integrated with TH Real Estate’s existing third-party global investment platform. As the third-largest real estate manager in the worldi, TH Real Estate manages $97bn in AUM and a suite of nearly 80 funds and mandates spanning both debt and equity across diverse geographies, sectors, investment styles and vehicle types, providing clients with access to every aspect of real estate investing. TH Real Estate is part of the global real assets unit within TIAA Global Asset Management and will remain so. The U.S. Cities Funds will reside on the TH Real Estate platform, along with all other real estate funds currently managed by TIAA Global Asset Management, including the U.S. Super Regional Mall Fund.
“We’ve been offering cross-border investment solutions for years, but having a unified investment approach will allow us to deliver a consistent menu of global real state solutions across geographies, styles and sectors,” said Chris McGibbon, Head of TH Real Estate Americas said. “Integrating capabilities across all three regions to form a fully unified and commercialized global real estate platform ensures that we are squarely focused on delivering innovative products supported by local knowledge, expert execution and a long-term view that goes beyond market cycles.”
The unification of TIAA Global Asset Management’s U.S. real estate operations with TH Real Estate reflects the firm’s focus on third-party real estate investment management. Mike Sales, Head of Europe and Asia, TH Real Estate and Chris McGibbon co-lead the unified business (photo attached). TH Real Estate was established in 2014 when TIAA (then TIAA-CREF) and Henderson Global Investors formed a joint venture between their real estate operations.
For more information, visit www.threalestate.com
