Nuveen Real Estate is planning to raise up to half a billion dollars for its latest US multifamily investment fund.
Michael Schwaab, a managing director responsible for the CASA fund series for Nuveen Real Estate, told IPE Real Assets that the fundraising target for CASA Partners IX – which started in April – is $400m (€335m) with a $500m hard cap.
”With 50% leverage, the fund would have a total capitalisation of somewhere between $800m and $1bn.”
The State of Wisconsin Investment Board (SWIB) said in a meeting document that it had approved a $100m commitment to the CASA Partners IX fund.
“The demand for middle-income multifamily housing and that the manager has a highly experienced investment team”, SWIB told IPE Real Assets.
The fund invests in B quality apartment assets that it believes are undercapitalised or mismanaged.
“For the fund, the investment focus will be with assets that are located in the Sun Belt region of the country. But we do continue to monitor the top 25 separate managed accounts for potential investing in the future,” Schwaab said.
SWIB said it has also made a $47m commitment into the Heitman Real Estate Debt Partners II fund and a $36m co-investment into an industrial property in the Chicago metropolitan area managed by Harrison Street Real Estate Capital.
According to the meeting document, the pension fund also added a number of potential new commitments to its investment pipeline during the second quarter.
The possible investments, which are under review, include $150m for a core-plus data centre separate account, $150m for a core retail separate account and $100m each into a land joint venture and for a commitment into a cold storage closed-end fund.
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