Global investment manager Nuveen Real Estate has recapitalised the TIAA General Account’s (TIAA) interest in its flagship Cityhold Office Partnership (CHOP) in a €625 mln deal.
TIAA has sold-down half of its initial 50% interest in the venture to CBRE Global Investment Partners (CBRE GIP), representing a value of €625 mln. Nuveen Real Estate will remain as portfolio and asset manager.
Jasper Gilbey, CHOP fund manager at Nuveen Real Estate said: 'We are delighted to welcome CBRE GIP into the Cityhold Office Partnership.
'The successful recapitalisation is credit to the quality of the real estate portfolio, shareholder base and shared ambition of creating a best-in-class and highly sustainable pan-European office portfolio.'
CHOP is a pan-European office venture managed by Nuveen Real Estate on behalf of four investors, including TIAA and AP1 and AP2.
Launched in 2015, the vehicle targets both core and value-add office investments in Tier 1 cities across Europe, including Paris, Berlin, Frankfurt, Amsterdam, Madrid, Milan and London. The partnership’s assets include 70 St Mary Axe in the City of London, 36 rue La Fayette in Paris, Burstah Offices in Hamburg and EDGE Olympic in Amsterdam.
In addition, the partnership is currently committed to two major developments – the Morland Mixité mixed-use project in Paris and EDGE Grand Central in Berlin.
'CHOP’s committed portfolio is now in excess of €3bn and we shall continue our selective approach to growing the portfolio – notably via well-located “build-to-core” opportunities in Tier 1 cities across Continental Europe,' Gilbey added.
Ian Gleeson, CEO, CBRE GIP, said: 'The fundamentals for prime office markets in European gateway cities remain strong with favourable leasing dynamics driving rental growth. The recapitalisation of the CHOP venture represents a rare opportunity to access a high quality and sustainable, in-place European office portfolio, alongside like-minded capital partners.'
Linklaters, together with local asset legal advisers, and EY advised TIAA, while Jones Day and Deloitte advised CBRE GIP.
