Canada Pension Plan Investment Board (CPP Investments) has made a A$300m (€169m) commitment to Nuveen’s debut Australian commercial real estate debt strategy.
The Canadian investor, through its CPPIB Credit Investments arm, has become a partner in the strategy anchored by Nuveen’s parent TIAA and Singapore’s state-owned investment firm Temasek.
Nuveen said it achieved the second close for its Australian real estate debt strategy, securing over A$650m in commitments. This brings the strategy’s total assets under management, including approved co-investment capital, to over A$1bn.
The manager said the strategy which mainly targets industrial and residential sectors, alongside selective investments in retail, office and alternatives, is over 40% deployed.
Andrew Kleinig, head of Australia and the global client group for South East Asia at Nuveen, said: “CPP Investments has provided significant value-add as a strategic investor, ensuring long-term success and growth of the partnership.
“It showcases Nuveen’s pedigree in real estate investment and our ability to bring regionally tailored solutions across both equity and debt platforms. We believe Nuveen’s offering across real assets more broadly is well-positioned to help clients across Asia navigate volatility alongside managing their responsible investment goals.”
Raymond Chan, managing director and head of APAC credit at CPP Investments, said: “Australia is one of our key markets in Asia Pacific and this transaction marks an important milestone for our credit strategy in the region. The investment builds upon our extensive market research and insights from our successful investments in Australia.
“Leveraging Nuveen’s strong local network and capabilities, this partnership enables us to tap into attractive real estate debt investments in Australia and further augment our credit program in the region. These opportunities offer stability and attractive yields amid global volatility, contributing to long-term returns for the CPP Fund.”
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