TIAA-CREF, today announced a joint venture with CNP Assurances, a leading French insurance company, to co-invest in three retail properties in Germany.
The portfolio has a gross value of $1.2 billion (approx. €924.1 million) and consists of shopping centers across Germany: PEP (Munich), Erlangen Arcaden (Erlangen) and Gropius Passagen (Berlin).
TIAA-CREF acquired the assets and will manage them on behalf of the newly created joint venture. AEW Europe advised CNP Assurances on the deal.
TIAA-CREF has been investing in Europe for almost 20 years and in German retail properties since 2007, when it developed the Erlangen Arcaden.
“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.”
The joint venture will pursue active asset management strategies and value creation opportunities, leveraging TIAA-CREF’s property-level operational experience and overall real estate management expertise to realize full value for its investments.
Today’s announcement advances TIAA-CREF’s 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 United States. This partnership is the first in which TIAA-CREF manages European-based properties for a joint venture.
TIAA-CREF directly owns more than $28.5 billion (approx. €21.26 billion) in gross assets of primarily high-quality properties in the office, retail, industrial and multifamily sectors across the United States and Western Europe.