US financial services giant TIAA-CREF has brought in French insurer CNP Assurances to co-invest in its €924 mln porfolio of German shopping centres.
US financial services giant TIAA-CREF has brought in French insurer CNP Assurances to co-invest in its €924 mln porfolio of German shopping centres.
TIAA-CREF did not disclose how much CNP is paying for its share in the joint venture which will own PEP in Munich, Erlangen Arcaden in Erlangen and Gropius Passagen in Berlin.
TIAA-CREF has been investing in Europe for almost 20 years and in German retail properties since 2007, when it developed the Erlangen Arcaden.
The US investor acquired Munich's PEP shopping centre in October 2011 for €415 mln, refelcting a record low yield at the time of 4.6%. About six months later TIAA-CREF formed an 80-20 joint venture with German retail specialist Mfi
to acquire the Gropius Passagen shopping centre in Berlin for €341 mln.
TIAA-CREF will manage the asset on behalf of the joint venture. AEW Europe advised CNP Assurances on the deal.
'Germany’s improving economy and limited supply of retail space continue to make these properties attractive assets in TIAA-CREF’s global real estate portfolio,' said Tom Garbutt, head of global real estate for TIAA-CREF. 'This joint venture, with a partner like CNP Assurances who shares our long-term vision, will allow us to further diversify our portfolio and take advantage of investment opportunities that we believe will add value over time.'
TIAA-CREF said that the joint venture advances its strategy to manage assets in partnership with sophisticated investors around the world. TIAA-CREF currently manages real estate investments on behalf of sovereign wealth funds and other institutions in the US. This partnership is the first in which TIAA-CREF manages European-based properties for a joint venture.
TIAA-CREF has $542 bn (€401 bn) n assets under management. The group directly owned more than $28.5 bn in gross real estate assets at end-September 2013 in the office, retail, industrial and multifamily sectors across the US and Western Europe.
CNP Assurances is active across Europe and in Latin America. The company recorded a net profit of €951 mln in 2012.