New York, New York and São Paulo, Brazil, September 30, 2016 – TIAA Global Asset Management announces that its parent company, TIAA (Teachers Insurance and Annuity Association of America), is increasing its stake in Radar Propriedades Agrícolas S.A (Radar), a joint-venture established in partnership with Cosan in 2008 which owns and manages rural properties in Brazil.
“Today's announcement strengthens our commitment to Brazil, where we have successfully capitalized on attractive investment opportunities and invested responsibly in farmland jointly with Cosan for years,” said José Minaya, President of TIAA Global Asset Management’s real assets division. “By increasing our stake in Radar and managing all of its agricultural properties, we are both enhancing our ability to invest in the region and strengthening our commitment to responsible investment practices across our rural property portfolio.”
Following the completion of the investment, Cosan will maintain control of the Radar farmland company and Radar’s property management team will join the newly created Westchester Group South America (WGSA), a Brazilian subsidiary of Westchester Group Investment Management. TIAA is paying consideration in the amount of R$1.1 billion in connection with its increased stake in Radar. Nearly all of Radar’s current key employees will continue in their current roles within WGSA.
Westchester is a leading global farmland asset management company that is part of TIAA Global Asset Management. Under a services agreement, WGSA will provide property management services to all of Radar’s rural property portfolio.
“With this transaction, Cosan takes another step towards directing its activities to the energy and logistics sectors, which are the company's core businesses,” said Marcos Lutz, Cosan Limited’s CEO.
TIAA Global Asset Management’s farmland investment strategy strictly adheres to sustainable and ethical investing principles. The company acquires and maintains agricultural land generally with a 20- to 30-year investment horizon, working in partnership with local operators or tenants to improve their lands, enhance farming practices, adapt new technologies and commit to the conservation of natural resources in order to build long-term asset value for investors.
The transaction is expected to close by the end of 2016, subject to customary closing conditions and regulatory approvals in Brazil.
TIAA Global Asset Management provides investment advice and portfolio management through Teachers Insurance and Annuity Association of America (TIAA) and more than a dozen affiliated registered investment advisers. Collectively managing $889 billion in assets as of June 30, 2016, 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.
Cosan is one of the largest Brazilian companies, with investments in strategic sectors such as agribusiness, fuels and natural gas distribution, lubricants and logistics. Throughout its more than 80 years of history, Cosan has diversified its operations and currently manages a portfolio of large companies like Raízen Combustíveis, Raízen Energia, Comgás, Cosan Lubrificantes, Cosan Biomassa, Radar and Rumo.
Mary Ellen Higgins
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