NEW YORK, August 15, 2016 – TIAA Global Asset Management has announced the successful closing of the T-C U.S. Super Regional Mall Fund LP (“U.S. SRM Fund”) after raising $1.25 billion from investors.
TIAA Global Asset Management’s U.S. SRM Fund seeks to provide investors with access to dominant super-regional malls via ventures with top tier operators. As one of the leading retail investors in the U.S. with a $15 billion, 64 million square- foot equity and debt portfolio comprised of malls, grocery anchored centers and urban retail, the firm has extensive sector expertise along with unique market analysis and asset selection capabilities.
“Super-regional malls have proven to be a distinctly strong and stable performer throughout multiple cycles. They have demonstrated high NOI growth, low volatility compared to other property sectors, and a history of out-performing the NCREIF Property Index1,” said Suzan Amato, managing director at TIAA Global Asset Management.*
The U.S. SRM Fund has capital commitments from several domestic and foreign institutional investors as well as TIAA’s General Account. To date, the fund has invested approximately $685 million and is seeking additional assets. With leverage, the equity commitments will allow the fund to target a portfolio of approximately $2.5 billion.
“With the increased demand from institutional investors in real assets, we are continually leveraging our global investment experience to develop products that tap into high performing sectors,” added Scott Kempton, managing director and the fund’s portfolio manager. “We believe that U.S. super-regional malls present a sound long-term investment given the current lack of mall construction and the shift towards consumers seeking entertainment experiences outside the home. These assets are unique, hands-on environments, often offering extensive food hall and fine dining options, as well as movie theatres and other attractions that can ultimately help drive traffic and sales.”
TIAA Global Asset Management’s real estate platform, which includes the wholly-owned subsidiary TH Real Estate, is one of the largest real estate investment managers in the world with $97 billion in AUM. Managing a suite of nearly 80 funds and mandates spanning both debt and equity across diverse geographies, sectors, investment styles and vehicle types, the firm provides access to every aspect of real estate investing. With offices in 18 cities throughout the U.S., Europe and Asia Pacific, over 400 professionals and 60 years of investing experience, the platform offers deep local expertise coupled with a sophisticated global perspective that incorporates strategic insights into every stage of the investment process.
TIAA Global Asset Management provides investment advice and portfolio management through Teachers Insurance and Annuity Association (TIAA) and more than a dozen affiliated registered investment advisers. Collectively managing $889 billion in assets, the business provides access to innovative investment strategies through expertise that spans traditional and alternative asset classes, generating new investment opportunities for clients through a wide array of vehicles including funds, customized strategies and solutions. TIAA Global Asset Management is committed to TIAA’s legacy of helping individuals and institutional clients achieve long-term investment success and financial well-being.
1Real estate investment performance data reported by NCREIF --the industry standard benchmark provider which tracks performance since 1978 -- shows that super-regional malls have delivered stronger risk-adjusted returns that the office, industrial and apartment property sectors over the last thirty years.
TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, Members FINRA and SIPC, distribute securities products.