A new real estate investment trust (REIT) set up by Nuveen to invest in cities globally has been “declared effective” by the US Securities and Exchange Commission.
Nuveen Global Cities REIT has been set up to invest primarily in stabilised, income-oriented commercial real estate located in and around leading cities.
In a SEC filing late last year, Nuveen stated that the global cities will seek to invest in properties for their ”resilience, long-term structural performance and ability to deliver an attractive and stable distribution yield.
“We expect that a majority of our real estate investments will be located in the US and that a substantial but lesser portion of our portfolio will include real properties located in Canada, Europe and the Asia-Pacific region.”
Following the SEC approval this month, Nuveen Global Cities REIT can now go ahead with its initial public offering to raise up to $5bn (€4.1bn) by offering shares on a ”continuous basis”.
The REIT is sponsored by Nuveen, the investment management arm of US financial services group TIAA, and externally advised by its affiliate, TH Real Estate Global Cities Advisors, an affiliate of TH Real Estate.