UNITED STATES - TIAA-CREF has bought a majority stake in timberland investment company GreenWood Resources (GWR).

The price paid for the stake was not disclosed, but the deal will see GWR become a subsidiary of the $481bn (€382bn) US institutional investor, with the $350m in assets and commitments bringing total timberland assets to $1.8bn.

Jose Minaya, managing director and head of global natural resources and infrastructure investments at TIAA-CREF, said: "Our relationship with GreenWood Resources will allow us to further diversify our timber investments into new regions while maintaining our commitment to social and environmental best practices, which in turn can offer the opportunity for more consistent investment results over the long term."

GWR chief executive Jeff Nuss said the company, founded in 1998, aimed to use "superior plant material" to best achieve its sustainable practices.

Nuss added: "Partnering with TIAA-CREF will allow us to accelerate our investments in innovation, grow our platform and take advantage of attractive new markets to best meet our clients' needs."

While the acquisition will see GWR's management team stay in place, International Forestry Investment founder Clark Binkley will join as managing director and chief investment officer.

TIAA has previously bought a stake in agricultural manager Westchester Group, while it launched an agricultural property company last year alongside Sweden's buffer fund AP2.

The joint venture with British Columbia Investment Management Corporation and Caisse De Dépôt Et Placement Du Québec earlier in the year boosted commitments to $2bn.