Nuveen Fund Acquires $1.3B Industrial Portfolio
Its US Cities Industrial fund has raised $660 million to buy industrial properties in select US cities.
NEW YORK—Nuveen Real Estate has raised $660 million to launch its US Cities Industrial Fund, an open-ended vehicle that is acquiring industrial properties in select US markets.
As part of its first close, the fund acquired a $1.3 billion seed portfolio of 45 industrial properties totalling 11.4 million square feet in 12 US logistics markets. No other details were provided about this transaction.
Institutional investors participating in the fund’s first close came from North America, Europe and Asia-Pacific and included a $150 million commitment from Nuveen’s parent, TIAA.
Nuveen Real Estate has been investing in the industrial sector since 1953 and currently manages $16.9 billion of logistics investments globally. The firm’s US industrial holdings now approximate $13.2 billion across both equity and debt investments with exposure to 247.2 million square feet in the US. Specifically, the US Cities Industrial Fund is concentrating on buildings that are closest to consumers and in markets with strong fundamental growth opportunities and that capitalize on e-commerce and urbanization trends, said Brian Tilton, portfolio manager of the fund, in prepared remarks.