Nuveen Real Estate launches third UK debt strategy, securing c. £140 million in initial commitments

• Third iteration of the firm’s UK debt strategy
• Initial capital of c. £140 million secured from a range of international investors
• Nuveen’s global debt platform now has AUM of over $41 billion

Nuveen Real Estate, one of the largest real estate investment managers globally, has completed the first close of its third UK debt strategy, having secured c. £140 million in initial commitments.

Several U.K. and international investors have committed to the first close joined by TIAA’s ‘General Account’, which is managed by Nuveen. The strategy is targeting a total capital raise of £500 million, and it is currently in the process of completing its first two loans for the latest venture.

This launch represents the third iteration of Nuveen’s UK debt series, which has been designed to provide a solution for institutional investors looking to access potential returns which are secure and income-focused. The firm’s global debt platform has grown significantly in recent years and is active across the US, Europe and APAC, with over $41 billion of capital invested globally on behalf of a range of pooled funds and separate mandates from a global client list.

The success of this first close follows the origination of c. £500 million in new loans by Nuveen Real Estate’s European Debt Team during the first half of 2021, secured against a wide-range of asset classes including logistics, residential, life sciences and offices.

The company also recently announced the appointment of Peter Hansell as a Senior Director, bolstering its European debt team.

Christian Janssen, Head of Commercial Real Estate Debt, Europe, at Nuveen Real Estate, commented: “The successful first close of our latest UK debt strategy shows the continued investor appetite for commercial real estate debt particularly through a firm like Nuveen, which has a proven track record in the market. We are pleased to have some existing investors re-upping their commitments.

“At this time, debt investment is at a sweet spot in the market, as it can offer an attractive level of income with a measure of downside protection against short-term volatility, which is particularly prevalent as the UK comes out of the pandemic and establishes its post-Brexit geo-economic position. The Debt Team’s global expertise, track record and reputation help us source and manage attractive opportunities for our investors.”

Nuveen Real Estate’s global debt platform, which has been investing since 1934, is active across the US, Europe and APAC, investing on behalf of a range of mandates from an institutional global client list. It is designed for secure, income-focused returns and downside risk mitigation.