Think global: Identifying tomorrow’s world cities

Alice Breheny
Head of Research, Global Cities REIT
  • Global Head of Research, Nuveen
  • A busy street in Tokyo
    Video thumbnail of Alice Breheny
    Alice Breheny, Global Head of Research, discusses why to invest in global cities now
    The viability of a cities-based real estate strategy appears questionable in these challenging times. Our day-to-day activities in cities around the world have been altered in ways few of us would have imagined just a few months ago. The spread of the coronavirus, the disruption to our daily lives, and the toll on health and human life are alarming.

    City life seems diminished amid restrictions on movement and travel. Despite this, we expect that over the medium to long term, the greater economic opportunities and the dynamism of the world’s cities will continue to make them attractive places to live and work.

    Identifying resilient cities that will adapt and thrive amid structural change is at the heart of our global cities approach.

    We discuss what the cities of tomorrow’s world could look like in our research report. We explore the effects of urbanisation, rising middle classes, generational shifts, digital drivers and sustainability.

    From the hard facts of population density and GDP figures to the softer factors of culture and wellbeing, we look at how we can measure and assess a city’s resiliency.

    We also explain why diversifying a portfolio is not as straightforward as many people think and why local execution is crucial to a global real estate investor’s success.
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    Risk factors

    Nuveen Global Cities REIT, Inc. is a non-listed REIT, which offers limited liquidity as compared to other products, such as publicly listed REITs. Investors in Nuveen Global Cities REIT, Inc. are not receiving publicly listed shares. An investment in Nuveen Global Cities REIT, Inc. involves a high degree of risk, including the same risks associated with an investment in real estate investments, including fluctuations in property values, higher expenses or lower expected income, currency movement risks and potential environmental liabilities. Please consider all risks carefully prior to investing in any particular strategy, including the following risks for Nuveen Global Cities REIT, Inc.:

    • We recently commenced operations and there is no assurance that we will achieve our investment objectives.
    • This is a “blind pool” offering and other than the investments described in the prospectus, you will not have the opportunity to evaluate our investments before we make them.
    • Since there is no public trading market for shares of our common stock, repurchase of shares by us will likely be the only way to dispose of your shares. Our share repurchase plan provides stockholders with the opportunity to request that we repurchase their shares on a monthly basis, but we are not obligated to repurchase any shares and may choose to repurchase only some, or even none, of the shares that have been requested to be repurchased in any particular month in our discretion. In addition, repurchases are subject to available liquidity and other significant restrictions. Further, our board of directors may modify, suspend or terminate our share repurchase plan if it deems such action to be in our best interest and the best interest of our stockholders. As a result, our shares should be considered as having only limited liquidity and at times may be illiquid.
    • The purchase and repurchase price for shares of our common stock is generally based on our prior month’s NAV (subject to material changes as described above) and is not based on any public trading market. While there is independent periodic appraisals of our properties, the appraisal of properties is inherently subjective, and our NAV may not accurately reflect the actual price at which our assets could be liquidated on any given day.
    • We have no employees and are dependent on Nuveen Real Estate Global Cities Advisors and its affiliates to conduct our operations. Nuveen Real Estate Global Cities Advisors will face conflicts of interest as a result of, among other things, the allocation of investment opportunities among us and Other Nuveen Real Estate Accounts, the allocation of time of investment professionals and the fees that we pay to Nuveen Real Estate Global Cities Advisors.
    • We cannot guarantee that we will make distributions, and if we do we may fund such distributions from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, return of capital or offering proceeds, and we have no limits on the amounts we may pay from such sources.
    • This is a “best efforts” offering. If we are not able to raise a substantial amount of capital in the near term, our ability to achieve our investment objectives could be adversely affected.
    • There are limits on the ownership and transferability of our shares.
    • If we fail to qualify as a REIT and no relief provisions apply, our NAV and cash available for distribution to our stockholders could materially decrease and we could face a substantial tax liability.
    • Our investments in International Affiliated Funds may be subject to currency, inflation or other governmental and regulatory risks specific to the countries in which the Funds operate and own assets.