Nuveen Real Estate has recapitalised the TIAA General Account’s (TIAA) interest in its flagship Cityhold Office Partnership (CHOP).
TIAA has sold-down half of its initial 50% interest in the venture to CBRE GIP, representing a value of c. €625 million. Nuveen Real Estate will remain as portfolio and asset manager.
CBRE GIP is an industry leader in the provision of global and regional customised indirect real estate investment solutions.
CHOP is a pan-European office venture managed by Nuveen Real Estate on behalf of four investors, including TIAA and AP1 and AP2. Launched in 2015, the long-term partnership has strong growth ambitions and is currently targeting both core and value-add office investments in Tier 1 cities across Europe, including Paris, Berlin, Frankfurt, Amsterdam, Madrid, Milan and London.
CHOP has assembled a high-quality portfolio of assets across Europe with a strong focus on sustainability and smart technology. The partnership’s assets include 70 St Mary Axe in the City of London, 36 rue La Fayette in Paris, Burstah Offices in Hamburg and EDGE Olympic in Amsterdam. In addition, the partnership is currently committed to two high-profile developments – the Morland Mixité mixed-use project in Paris and EDGE Grand Central in Berlin.
Jasper Gilbey, Fund Manager, Cityhold Office Partnership, Nuveen Real Estate, said: “We are delighted to welcome CBRE GIP into the Cityhold Office Partnership. The successful recapitalisation is credit to the quality of the real estate portfolio, shareholder base and shared ambition of creating a best-in-class and highly sustainable pan-European office portfolio. "
“CHOP’s committed portfolio is now in excess of €3bn and we shall continue our selective approach to growing the portfolio – notably via well-located “build-to-core” opportunities in Tier 1 cities across Continental Europe.”
Ian Gleeson, CEO, CBRE Global Investment Partners, added:
“The fundamentals for prime office markets in European gateway cities remain strong with favourable leasing dynamics driving rental growth. The recapitalisation of the CHOP venture represents a rare opportunity to access a high quality and sustainable, in-place European office portfolio, alongside like-minded capital partners. This transaction is in-line with CBRE GIP’s investment strategy of executing in scale within market segments which we believe are well placed to deliver attractive returns to our investors.”
Linklaters, together with local asset legal advisers, and EY advised TIAA, while Jones Day and Deloitte advised CBRE GIP.