Australian real estate debt catches eye of | Australian Markets

The Canada Pension Plan Investment Board (CPP Investments), Australia’s federal superannuation counterpart, has change into the latest abroad investor to dip into Australian industrial real estate debt by way of international asset supervisor Nuveen’s flagship strategy.

Nuveen confirmed the strategy had made its second close with over $650 million dedicated, together with $300 million from CPP Investments via its subsidiary CPPIB Credit Investments Inc. and the remaining from fellow strategic companions, the Teachers Insurance and Annuity Association of America (TIAA) and Singapore’s Temasek.

The asset supervisor stated Australian industrial real estate provides an engaging alternative for abroad buyers, combining “stability, attractive yields and strong collateral protection” amid ongoing market volatility. It will think about “repeat institutional borrowers, conservative lending parameters and prime assets in sectors that benefit most from Australia’s high population growth and limited supply”, in line with Nuveen.

“Australia is one of our key markets in Asia Pacific and this transaction marks an important milestone for our credit strategy in the region. The investment builds upon our extensive market research and insights from our successful investments in Australia,” Raymond Chan, Managing Director & Head of APAC Credit at CPP Investments, stated.

“Leveraging Nuveen’s robust native community and capabilities, this partnership allows us to faucet into engaging real estate debt investments in Australia and additional increase our credit program within the area.

“These opportunities offer stability and attractive yields amid global volatility, contributing to long-term returns for the CPP Fund.”

Led by Dugald Marr, Nuveen’s Head of Debt Australia and New Zealand, the strategy jumps off from Nuveen Real Estate’s established international debt platform and leverages a observe report of efficiency and a wealth of expertise amongst 55 specialists and 60 workforce members based mostly in Asia.

The strategy – which has already been 40 per cent deployed via dedicated institutional senior and junior loan investments – favours the economic, logistics and residential real estate sectors, with conditional allowances made within the retail, workplace and options areas.

As an offshoot of Nuveen Real Estate’s present platform, the strategy additionally applies an extra accountable investment and environmental, social and governance (ESG) screening course of to its investments, together with waste discount, vitality consumption, climate risk evaluation and social points.

“This is another milestone for the strategy. With CPP Investments’ commitment, we will continue our focus on strategic, in-depth partnerships with the highest calibre of investors,” Andrew Kleinig, Head of Australia and the Global Client Group for South East Asia at Nuveen, stated.

“We are excited to work with a like-minded associate who additionally shares a high conviction on the asset class. CPP Investments has offered important value-add as a strategic investor, guaranteeing long-term success and growth of the partnership.

“It showcases Nuveen’s pedigree in real estate investment and our ability to bring regionally tailored solutions across both equity and debt platforms. We believe Nuveen’s offering across real assets more broadly is well-positioned to help clients across Asia navigate volatility alongside managing their responsible investment goals.”