Nuveen Real Estate has announced the launch of a new global impact investing strategy, focusing on sustainable communities and residential wellbeing.
Nadir Settles will serve as global head of impact investing and Pamela West as senior portfolio manager, impact investing.
While Nuveen has been an active impact investor for 50 years, the new global real estate sector will provide strategies that address some of the most pressing social and environmental challenges in the US, Europe, and the Asia-Pacific region (APAC), the firm said, supporting growth goals of up to $15 bn (€14.4 bn) in real estate AUM by 2026.
Strategies will invest in early-stage projects and take an impact-led approach to increase the supply of social and affordable housing by targeting low-income and disadvantaged populations, while also focusing on regeneration projects within healthcare, education, and transportation services.
'By leveraging Nuveen Real Estate’s industry expertise, we are going beyond just affordable housing to focus our attention on community revitalisation,' said Settles. 'We see an immediate opportunity to scale our strategy and leverage our leading position in the industry to support tenant well-being and create a more sustainable future. I am honored to have been chosen to lead such a significant sector.'
Specifically, the mandate is designed to improve communities by providing supportive services, enhancing residents’ quality of life and financial outcomes, and ensuring affordable, sustainable and climate safe housing, while at the same time supporting Nuveen Real Estate’s commitment to making its global property portfolio net zero carbon by 2040.
'Nuveen is a pioneer in impact investing and we are competitively positioned to deliver a market-leading sector globally and at scale,' said Chris McGibbon, global head of real estate at Nuveen.
'Under Nadir and Pamela’s leadership, I am confident that this new sector will address some of the most pressing challenges in local real estate across the globe, while creating an avenue for investors to have a significant impact through their capital investment. I look forward to working with a seasoned team of experts to build on Nuveen’s incredible work in the industry.'
Settles will report directly to Carly Tripp, global chief investment officer and head of investments at Nuveen Real Estate, and lead an international team across the US, Europe and APAC. Settles will also continue to lead investments as head of New York Office.
West reports to Shawn Lese, chief investment officer and head of funds management, Americas at Nuveen Real Estate.
The global real estate impact investing sector builds on Nuveen’s overall efforts in impact. Last month, the firm expanded its range of impact investing strategies to Europe with the launch of the German living impact platform, led by portfolio manager Tanja Volksheimer, to deliver social and environmental impact through affordable housing.
The news also comes on the heels of the final close of the firm’s first private equity impact fund, which targets investments that promote energy efficiency and an expansion of services for underserved communities.
Abigail Dean, global head of strategic insights at Nuveen, said: 'Around the world we see a trend toward real estate as an effective tool for positive change for communities.
'Working as partners, local communities and real estate owners can meet shared objectives and tackle local challenges, from sustainability and mitigating climate risk, to healthcare, housing, and social exclusion. The built environment offers an exciting opportunity to deliver measurable impact across a range of assets, projects and locations.'
Nuveen made its first investment in impact in the 1980s and has since invested over $500 mln in direct and indirect private equity capital across over 200 portfolio companies in alignment with the United Nations Sustainable Development Goals. Today, Nuveen manages over $5.8 bn across all of its public and private markets impact investing strategies.
Nuveen Real Estate is one of the world’s largest real estate investment managers with more than $152 billion of assets under management.
