Nuveen Real Estate has bought $1.3bn (€1.16bn) seed portfolio for a newly launched open-ended US cities industrial fund.
The US Cities Industrial Fund has received $660m worth of capital commitments from institutional investors in North America, Europe and Asia-Pacific, including a $150m commitment from Nuveen’s parent, TIAA.
Nuveen said the core real estate investment vehicle’s seed portfolio of 45 buildings totalling 11.4m sqft are located in 12 strategic US logistics markets.
The US Cities Industrial Fund is part of Nuveen Real Estate’s global resilient series of open-end, core investment funds.
Brian Tilton, managing director, portfolio manager of the fund, said: “The US Cities Industrial Fund provides investors with broad-based logistics exposure while strategically concentrating investments in buildings that are closest to consumers and in markets with strong fundamental growth opportunities, together capitalising on secular demand trends driven by e-commerce and urbanisation.”
Wendy Pryce, managing director, real estate distribution specialist for Nuveen, said: “We are experiencing strong interest in our global resilient series of funds, which give investors exposure to global diversified core real estate with flexibility to customize allocations to regions or sectors, such as industrial and multifamily.”