10 February 2020 — Nuveen Real Estate, one of the world’s largest investment managers, has recapitalised the TIAA General Account’s (TIAA) interest in its flagship Cityhold Office Partnership (CHOP). TIAA has sold-down half of its initial 50% interest in the venture to CBRE GIP, representing a value of c. €625 million. Nuveen Real Estate will remain as portfolio and asset manager.
CBRE GIP is an industry leader in the provision of global and regional customised indirect real estate investment solutions.
CHOP is a pan-European office venture managed by Nuveen Real Estate on behalf of four investors, including TIAA and AP1 and AP2. Launched in 2015, the long-term partnership has strong growth ambitions and is currently targeting both core and value-add office investments in Tier 1 cities across Europe, including Paris, Berlin, Frankfurt, Amsterdam, Madrid, Milan and London.
CHOP has assembled a high-quality portfolio of assets across Europe with a strong focus on sustainability and smart technology. The partnership’s assets include 70 St Mary Axe in the City of London, 36 rue La Fayette in Paris, Burstah Offices in Hamburg and EDGE Olympic in Amsterdam. In addition, the partnership is currently committed to two high-profile developments – the Morland Mixité mixed-use project in Paris and EDGE Grand Central in Berlin.
Jasper Gilbey, Fund Manager, Cityhold Office Partnership, Nuveen Real Estate, comments: “We are delighted to welcome CBRE GIP into the Cityhold Office Partnership. The successful recapitalisation is credit to the quality of the real estate portfolio, shareholder base and shared ambition of creating a best-in-class and highly sustainable pan-European office portfolio.
“CHOP’s committed portfolio is now in excess of €3bn and we shall continue our selective approach to growing the portfolio – notably via well-located “build-to-core” opportunities in Tier 1 cities across Continental Europe.”
Ian Gleeson, CEO, CBRE Global Investment Partners, comments: “The fundamentals for prime office markets in European gateway cities remain strong with favourable leasing dynamics driving rental growth. The recapitalisation of the CHOP venture represents a rare opportunity to access a high quality and sustainable, in-place European office portfolio, alongside like-minded capital partners. This transaction is in-line with CBRE GIP’s investment strategy of executing in scale within market segments which we believe are well placed to deliver attractive returns to our investors.”
Linklaters, together with local asset legal advisers, and EY advised TIAA, while Jones Day and Deloitte advised CBRE GIP.
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About Nuveen Real Estate
Nuveen Real Estate is one of the largest investment managers in the world with $130 billion of assets under management.
Managing a suite of funds and mandates, across both public and private investments, and spanning both debt and equity across diverse geographies and investment styles, we provide access to every aspect of real estate investing.
With over 80 years of real estate investing experience and more than 600 employees* located across over 25 cities throughout the United States, Europe and Asia Pacific, the platform offers unparalleled geographic reach, which is married with deep sector expertise.
For further information, please visit us at nuveen.com/realestate
*Includes 310+ real estate investment professionals, supported by a further 280+ Nuveen employees.
Source: Nuveen, 30 Sep 2019.
Notes to Editors
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Issued by Nuveen Real Estate Management Limited, 201 Bishopsgate, EC2M 3BN. Authorised and regulated by the Financial Conduct Authority.
Nuveen Real Estate is a name under which Nuveen Real Estate Management Limited provides investment products and services.
Nuveen Real Estate is a real estate investment management holding company owned by Teachers Insurance and Annuity Association of America (TIAA). Nuveen Real Estate securities products distributed in North America are advised by UK regulated subsidiaries or Nuveen Alternatives Advisors LLC a registered investment advisor and wholly owned subsidiary of TIAA, and distributed by Nuveen Securities, LLC, member FINRA.
About CBRE Global Investment Partners
CBRE Global Investment Partners (CBRE GIP) is a division of CBRE Global Investors. CBRE GIP delivers investment solutions customised for clients’ individual objectives by constructing portfolios using private funds, secondaries, co-investments and joint ventures, partnering with leading operators and fund managers for each strategy. Investments cover the risk spectrum from core to enhanced, can be global or regional in nature, and use a variety of investment vehicles based on clients’ preferences. GIP has $30.1 billion in assets under management* as of September 30, 2019.
CBRE Global Investment Partners Limited is authorised and regulated in the United Kingdom by the Financial Conduct Authority (FCA), and is also a registered investment adviser with the United States Securities Exchange Commission.
* Includes $7.9B of AUM managed by CBRE Global Investors affiliates. Assets under management (AUM) refers to the fair market value of real asset-related investments with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real asset-related loans. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real asset market, and its calculation of AUM may differ from the calculations of other asset managers.