13 Dec 2018
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TH Real Estate completes fundraising for U.S. Industrial platform, raising $330 million from investors
TH Real Estate has closed their U.S. Industrial platform with a total capital raise exceeding $330 million.
Including leverage, the equity commitments will allow the platform to target a portfolio of approximately $1 billion.
The platform seeks to selectively acquire and develop bulk and light industrial assets in major U.S. industrial markets including last mile locations that serve as a cornerstone of e-commerce supply chains. The Fund focuses on well-located properties in these top industrial markets that can be repositioned to generate higher occupancies and rent, as well as re-development opportunities and traditional warehouse and logistics facilities.
"While the traditional port-driven warehouse markets continue to grow at a consistent pace, online commerce is accelerating demand for state-of-the-art facilities that can facilitate same-day and one-hour deliveries in major metropolitan areas across the U.S.," said Brad Simpkins, Portfolio Manager. "A supply shortfall in these facilities coupled with healthy economic growth has generated significant pent-up demand for these industrial properties."
TH Real Estate has been investing in the industrial sector since 1953 and currently manages approximately $11.2 billion of industrial properties globally. The firm’s U.S. industrial holdings total $8.8 billion across equity and debt investments, covering 998 properties.
"Investor interest in this asset class remains strong, reflecting the opportunities created by a growing economy and a supply shortage that keeps vacancy rates low and rents high," added Graydon Bouchillon, Head of U.S. Industrial for TH Real Estate. "The platform attracted a wide range of interest from sophisticated institutional investors, individuals and financial advisors, reflecting broad-based interested in our diversified investment strategy."
The portfolio has acquired four U.S. properties to date:
- 301 Business Center, a “Class A” industrial development project totaling 863,600 sq. ft. located in Tampa, Florida
- Empire Business Park, which consists of two multi-tenant business parks totaling 212,626 sq. ft. located in Southern California’s Inland Empire
- Serrano Business Park, a “Class A” industrial development consisting of three ifacilities totaling 327,080 sq. ft. located in Southern California’s Inland Empire
- 8575 Volta Drive, a ”Class A” industrial warehouse totaling 168,425 sq. ft. located in Houston
According to TH Real Estate’s U.S. Cities: 2019 Outlook, the firm forecasts that rent growth in the broad industrial sector will continue to outperform other sectors in 2019 as supply will remain constrained, especially for light industrial properties in urban areas that are benefiting from e-commerce activity.
Note: TH Real Estate renamed to Nuveen Real Estate in January 2019.TH Real Estate is a real estate investment management holding company owned by Teachers Insurance and Annuity Association of America (TIAA). TH 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. Issued by Nuveen Real Estate Management Limited, 201 Bishopsgate, EC2M 3BN. Authorised and regulated by the Financial Conduct Authority. TH Real Estate is a name under which Nuveen Real Estate Management Limited provides investment products and services. Please note real estate investments are subject to various risks, including fluctuations in property values, higher expenses or lower income than expected, and potential environmental problems and liability. This material is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy or sell securities, and is not provided in a fiduciary capacity. The information provided does not take into account the specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on an investor's objectives and circumstances and in consultation with his or her advisors.