TIAA Plans to Introduce a Nontraded REIT

November 6, 2017

TIAA Plans to Introduce a Nontraded REIT

November 3, 2017 | James Sprow | Blue Vault

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TIAA’s London-based real estate arm is introducing a nontraded real estate investment trust in the coming months, PERE News reported, citing unnamed sources familiar with the vehicle. According to PERE, the TH Real Estate program aims to raise between $2 billion and $5 billion, placing it in the same neighborhood in terms of scale as the recently introduced nontraded REIT program from Starwood Capital Group, and the successful introduction of Blackstone’s REIT. 

Starwood recently filed plans to expand into the nontraded REIT space through Starwood Real Estate Income Trust Inc., while Blackstone entered the market with the launch of Blackstone Real Estate Income Trust Inc. in August 2016. Blackstone’s Real Estate Income Trust has already raised over $1 billion in equity in 2017, more than the next four largest nontraded REIT offerings combined.

The PERE report stated that a spokeswoman for the new REIT declined to comment, however PERE understands that the permanent capital vehicle will be focused on stabilized, income-oriented properties in the US, similar to the strategy Blackstone and Starwood Capital Group are following.

Other nontraded REITs affiliated with private equity real estate firms include JLL Income Property Trust, a five-year-old, $2.5 billion program that is managed by Chicago-based LaSalle Investment Management and owned 69 properties as of September 30, according to its Q3 2017 report. Deutsche Asset Management manages RREEF Property Trust, which also launched in 2012 and managed eight properties and $172 million in total assets as of June 30, according to its Q2 2017 report.

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