Nuveen Real Estate’s Asia-Pacific Cities strategy has raised another US$65m (€57m) from a new investor, lifting the total capital raised to more than US$650m since it launched the fund in late 2018.
Louise Kavanagh, managing director Asia-Pacific, of Nuveen Real Estate told IPE Real Assets that the new investor came from the Netherlands, but declined to disclose their identity.
She said: “We understand they have made investments in other products in the region previously.”
The Asia-Pacific Cities vehicle currently owns assets across Japan, Australia and South Korea in the logistics, residential and office sectors, with a current standing weighting towards logistics.
Asked about investment opportunities in Asia-Pacific post-COVID, Kavanagh told IPE Real Assets: “As an investment strategy with a focus on research, we will be spending a lot of time watching how things play out in different jurisdictions.
“Over the next decade we, and other core investment vehicles, will be in pursuit of assets that best embody the story of structural growth.”
In the short term, Kavanagh told IPE Real Assets, office markets in Tokyo, Seoul and selected Australian east coast locations could offer good opportunities.
Currently, Nuveen is negotiating to purchase an asset off-market in Seoul.
There was an ongoing strong demand to anchor prime office rents with limited downside risks due to tight vacancy rates,” she said.
However, the COVID pandemic could put greater pressure on regional office markets – those already in a late stage of their cycle or concentrated in terms of occupier demand fundamentals within industries.
Logistics would remain a popular area of investment, she said, particularly in areas where there were limited high-grade specification supply and reasonable domestic-driven customer demand.
Nuveen would also look to invest further in multifamily assets in key Japanese cities, Kavanagh said. In March, it paid US$140m for a multifamily portfolio in Japan.
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