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Nuveen Real Estate is one of the largest investment managers in the world with $156bn of assets under management.

Managing a suite of funds and mandates, across both public and private investments, and spanning both debt and equity across diverse geographies and investment styles, we provide access to every aspect of real estate investing.

With over 85 years of real estate investing experience and more than 740 employees* located across 30+ cities throughout the United States, Europe and Asia Pacific, the platform offers unparalleled geographic reach, which is married with deep sector expertise.

For further information, please visit us at nuveen.com/realestate

* Includes 370+ real estate investment professionals, supported by a further 370+ Nuveen employees.

Performance verification

Nuveen Real Estate has a dedicated Investment Analytics Team that operates independently of fund and account teams. The team calculates, reviews, and disseminates investment performance within the applicable real estate standards as well as providing attribution and analytical tools for understanding performance across the firm globally.

Sector forecasts

INDUSTRIAL: Although the industrial sector still outperformed in 2022, with strong rental growth fuelled by demand for inventory purposes, investors should be aware of sustainability of demand. Leasing demand may be disrupted by the surge in operating costs. Occupiers are likely to turn more selective. Combined with uneven new supply pressure in selected Asia Pacific markets, investors should be aware of a slowdown in rental growth or even rental decline for older and poorly located facilities. Investors are advised to stay selective on fundamentally attractive markets with tight supply and sizable domestic demand and focus on well-located and modern facilities to capture higher credit tenants.

OFFICE: Rising economic headwinds cloud regional office market recovery. Softening business confidence and weakening outlook for corporate profits will weigh on corporate investment and expansionary demand. Office performance across the region is expected to be bifurcated, market selection will be key. Singapore and Seoul continue to offer cyclical opportunities as both cities will remain in the upward rental cycle thanks to tight market availability. Australian east coast cities will also provide prospect for rental reversionary in prime office markets backed by flight-to-quality demand. In contrast, Tier-1 Chinese cities, Hong Kong and Tokyo, will remain in the downward rental cycle due to new supply concern.

RESIDENTIAL: Declining housing affordability and rising household numbers continue to make the living sector appealing to institutional investors amid stronger economic headwinds. The defensive nature of Japan multifamily has generated ongoing strong interest from overseas buyers. There is also growing interest in the student living sector in Australia as international students are returning to the country. The return of overseas migration will resume population growth which will drive demand for build-to-rent residential.

RETAIL: While the reopening of border controls and easing of social distancing restrictions help bring society back to normal, higher inflation and height- ened economic uncertainty will weigh on consumer spending. The likelihood of a slowdown in consumer spending alongside rising cost will temper retail- ers’ sentiment on taking retail space, resulting in ongoing weak rental outlook. Nonetheless, selective sub-segments such as neighbourhood malls will be rela- tively resilient as consumers are likely to spend more on necessities and less on discretionary items. Australian east coast cities provide a unique window of opportunity to tap into a recovery of overseas migration. China’s luxury outlet malls will also benefit from consumers’ demand on discounted luxury goods during the downturn.

OTHER: The heightened uncertainty in real estate markets and rising interest rate environment drive investors to look for defensive assets. The steady cashflows and downside risk protection characteristics of private commercial real estate debt alongside diversification purpose will continue to draw investors’ interests. Floating rate structures make direct lending to real estate projects attractive. Meanwhile, banks will tighten lending criteria given stricter capital requirements and potential cap rate expansion in valu- ation. This landscape provides a window of opportunity for non-bank lenders to provide refinancing in senior loan market or mezzanine financing to bridge funding gap in the developed economies.

Investment principles & strategy

A client-focused culture is at the core of who we are and what we believe our clients expect from us.

We take a stable, risk-aware investment approach to our business, which places our clients and investment teams at the heart of our process. Our fund management teams work closely with our clients to deliver investment perfor- mance that meets their objectives. The teams operate within a defined investment process with established risk controls, accompanied by investment committee oversight.

Our tomorrow’s world investment philosophy incorporates strategic insights on megatrends throughout every stage of the investment process, looking beyond market cycles to assess how structural trends can best inform long-term real estate investments. Environmental and social governance is embed- ded into everything we do for the enduring benefit of clients and society.

Strategic corporate development

We work closely with our clients to develop long-term strategic relationships, to understand their goals and meet their requirements. To ensure we provide each investor with a tailored solution, made up of a range of products and strat- egies, we have developed our range of solutions to offer the resilient, enhanced, debt and impact series:

  • Our resilient series is designed for investors who are focused on diversification, income and long-term capital growth. Our strategies focus on investing in high-quality assets in leading cities that are well positioned in terms of long-term structural trends, including demographic change, urbanisation and technology.
  • Our enhanced series applies strategies that work within market cycles, use a more active asset management and repositioning approach, and/or invest in emerging sectors and locations. These strategies are designed for investors that are looking for an enhanced level of capital growth.
  • Our debt series is designed to provide investors with access to secure, income-focused returns. Our strategies may suit cautious investors seeking attractive levels of income with a measure of downside risk mitigation against short-term capital cycles.
  • Our impact series is the newest addition to the offerings and is designed with the intention to generate positive social and environmental impact alongside a financial return. Our strategies are focused on developing solutions for people and the planet.

 

COMPLIANCE STATEMENT

All information is as at 30 June 2022.

These materials are only for use by the intended party and may only be circulated only to persons whom they may lawfully be distributed. Any entity responsible for forwarding this material to other parties takes respon- sibility for ensuring compliance with local laws, and in particular any applicable financial promotion rules. The information presented in these materials is believed to be materially correct as at the date hereof, but no rep¬resentation or warranty (express or implied) is made as to the accuracy or completeness of any of this information. Data was taken from sources deemed reliable, but cannot guarantee its accuracy. The statements con- tained herein reflect opinions as of the date written and are subject to change without further notice. Nothing set out in these materials is or shall be relied upon as a promise or representation as to the past or future. This information does not constitute investment research as defined under MiFID. Nuveen provides investment advisory solutions through its investment specialists.