Investment Extends TIAA-CREF’s Global Real Estate Platform into South
NEW YORK & SAO PAULO--(BUSINESS WIRE)--
TIAA-CREF, a U.S. financial services organization, today announced that
the TIAA General Account completed the purchase of a 36 percent stake in
JK Iguatemi Mall located in Sao Paulo. The investment extends
TIAA-CREF’s global real estate strategy to one of South America’s most
“An expanding middle class and rising affluence in Brazil make owning
dominant shopping centers such as JK Iguatemi Mall a very attractive
investment,” said Phil McAndrews, Managing Director, head of Americas
for TIAA-CREF’s real estate business. “This stake builds on TIAA-CREF’s
global strategy of owning commercial real estate in the world’s most
attractive markets and aligning with local operators to expand our
access to new investment opportunities.”
The JK Iguatemi Mall investment follows the successful launch earlier
this month of TIAA Henderson Real Estate (“TH Real Estate”), TIAA-CREF’s
joint venture with Henderson Global Investors that pursues core and
value-add real estate investment opportunities in Europe and Asia. The
joint venture, an extension of TIAA-CREF’s $48.2 billion global real
estate platform, manages $22.6 billion of assets across 50 funds and
mandates, overseen by a network of offices in Asia, Europe and North
America. TIAA-CREF’s ownership in JK Iguatemi Mall will be made through
the TIAA General Account, a significant client of TH Real Estate, which
will eventually manage the investment on behalf of the Account.
Today’s closing finalizes an agreement between the TIAA General Account
and Iguatemi Empresa de Shopping Centers SA (Iguatemi) for the
acquisition of 50% interest in the mall. As part of this agreement,
Iguatemi acquired 14% of JK Iguatemi and TIAA General Account agreed to
acquire the remaining 36% stake. TIAA-CREF and Iguatemi have received
full regulatory approval to close the transaction.
“We are excited to co-invest with a savvy local mall operator such as
Iguatemi and look forward to jointly identifying new investment
opportunities with their team,” added Adriana De Alcantara, Senior
Director for TIAA-CREF’s global real estate group in Brazil.
“We at Iguatemi are very pleased to co-invest with TIAA-CREF in Brazil.
We hope this will be the first step of a longstanding relationship and
that the JK Iguatemi Mall, already one of the top five assets in Brazil,
will benefit from TIAA-CREF’s expertise in retail properties,” added
Carlos Jereissati, CEO of Iguatemi Empresa de Shopping Centers S.A.
Located in Sao Paulo’s Vila Olimpia neighborhood, the JK Iguatemi Mall
was inaugurated in June, 2012 and is in the early stages of its growth
cycle, typically comprised of five years. Iguatemi’s tenants include
Topshop, Prada, and Burberry. Iguatemi will continue to manage the
TIAA-CREF has been investing in Brazil since 2008 through Radar, a joint
venture it formed with Cosan, the world’s largest grower and processor
of sugarcane and ethanol, to identify, acquire and manage agricultural
About Iguatemi Empresa de Shopping Centers S.A.
Iguatemi Empresa de Shopping Centers S.A. (Iguatemi) is one of the
largest full-service companies in the Brazilian shopping malls sector.
Its activities cover conception, planning, development and management of
shopping centers and mixed-use real estate complexes. It has interests
in 15 shopping malls, one outlet and 3 office towers, with a total GLA
of more than 613 thousand sqm and an own GLA of 385 thousand sqm. It
manages 14 of its malls, its outlet and its towers. It also has 2
shopping malls, two outlets and one commercial tower in development, and
3 expansions in progress at its existing malls.
Iguatemi’s shares are listed on the Novo Mercado of the Sao Paulo stock
exchange (Bovespa) under the ticker IGTA3.
is a national financial services organization with $569 billion in
assets under management (as of 3/31/2014) and is the leading provider of
retirement services in the academic, research, medical and cultural
TIAA Henderson Real Estate Limited (TH Real Estate) is a real estate
investment management holding company owned by Teachers Insurance and
Annuity Association of America (TIAA) and Henderson Global Investors. TH
Real Estate securities products distributed in North America are advised
by UK regulated subsidiaries or TIAA-CREF Alternatives Advisors, LLC, a
registered investment advisor and wholly owned subsidiary of TIAA, and
distributed by Teachers Personal Investors Services, Inc., member FINRA.
The TIAA General Account is an insurance company account and does not
present an investment return, and is not available to investors.
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