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TH Real Estate Entering Non-Traded REIT Market

Nuveen Global Cities REIT Looking to Raise Up to $5 Billion, Makes First Two Property Investments in the US
December 26, 2017
844 N 47th Ave. in the Papago Industrial Park in Phoenix was Nuveen Global Cities REIT's second purchase.

TH Real Estate is joining the growing list of global investment institutions and money managers jumping into the non-traded REIT sector.

London-based TH Real Estate, an affiliate of New York-based Nuveen LLC with $107 billion of real estate assets under management, is ranked as the fourth-largest real estate investment manager by the National Council of Real Estate Investment Fiduciaries (NCREIF).

Nuveen filed a registration statement for a proposed initial public offering of Nuveen Global Cities REIT looking to raise up to $5 billion.

According to the registration statement, Nuveen Global Cities REIT intends to invest primarily in stabilized, income-oriented commercial real estate located in and around major cities in the U.S., Canada, Europe and the Asia-Pacific region. It plans to focus approximately 60% of its portfolio in the U.S. with about 40% of its investments outside the U.S.

Among its objectives is to bring TH Real Estate's real estate investment platform with an institutional fee structure to the public, non-listed REIT industry.

The REIT has already made its first two acquisitions. Last week, it acquired an industrial warehouse/distribution building totaling 264,981 square feet within the Papago industrial park in Phoenix. And earlier this month, it acquired Kirkland Crossing Apartments a 266-unit complex in Aurora, IL, for $54.1 million.

The recent arrival of institutional investment firms such as Blackstone, Starwood Capital Group and Cantor Fitzgerald is reviving the outlook for the non-traded REIT sector.

Non-traded REIT fundraising is expected to end 2017 at $4.2 billion, nearly 79% lower than the $19.6 billion raised during the sector's 2013 peak, according to consulting firm Robert A. Stanger & Co. However, Stanger is forecasting a more-than 33% increase in fundraising in 2018 to $5.6 billion, largely due to the number of major institutional investors entering the sector.

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