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With approximately $29bn in assets under management and 11 global offices, USAA Real Estate is an industry leader in acquiring, developing, financing and managing the highest quality real estate assets in North America and Europe. The mission of USAA Real Estate is to serve the financial interests of its investor clients by strengthening the profitability and diversity of the USAA investment portfolio, which includes multifamily, industrial, office and hotel properties, as well as e-commerce logistics and distribution centres, media production facilities and data centres. Aligned with a series of strategic partnerships cultivated over decades of co-investment, USAA Real Estate engages with preeminent sector leaders demonstrating proven domain expertise in a shared drive to achieve superior, risk-adjusted returns. For more information, visit usrealco.com.

Sector forecasts

INDUSTRIAL: Building on existing core competencies in industrial and market leadership in e-commerce and logistics, including developing key elements of the e-commerce distribution system that are critical to meeting surging consumer demand, USAA Real Estate will continue to expand its industrial/logistics platform in North America and Europe, as the sector is well positioned to thrive in the years to come.

OFFICE: We believe we will see increased demand for new, innovative, health sensitive, and efficient buildings within the technology, life sciences, media, and medical sectors. We anticipate remaining a market leader in the creation of build-to-suits and significantly preleased office buildings under long-term leases to credit tenants.

We will also seek opportunities to expand our portfolio of government-leased, class-A office assets, as these investments align with our defensive approach.

RESIDENTIAL:

  • Rental Housing: Our emphasis continues to be on core creation by acquiring assets below replacement cost, with the potential to add value through renovation and enhanced property management. We believe the most attractive opportunities over the next decade will occur primarily around the middle market and workforce pricing segments.
  • Workforce Housing: USAA Real Estate is committed to addressing the lack of affordable workforce housing in the United States. We have identified systemically under-supplied markets, where communities are struggling to find housing for essential workers, and employers cannot recruit new workers because of a lack of affordable housing options.
  • Senior Housing: We are also focused on investment in the senior housing sector to address the need-based demand for congregate-care facilities and older stock that could be rendered obsolete.

RETAIL: Our retail strategy focuses on owning, developing, redeveloping and/ or financing shopping centres or retail components of mixed-use properties across a variety of submarkets, demographics and retail formats. The strategy includes investment opportunities in grocery-anchored retail centres, large outdoor shopping centres with an emphasis on big-box stores, urban retail, urban retail mixed-use, single-tenant net-leased retail.

OTHER:

  • Data Centres: Given the secular growth trends anticipated for this industry with the rapidly increasing demand for digital storage, we offer a vertically-integrated platform to develop, lease and manage this mission-critical infrastructure in the US and Europe.
  • Digital Infrastructure: Our strategy is focused on middle market real estate adjacent infrastructure investments across four main sectors: telecommunications, transportation, utilities and social infrastructure (cold storage, 5G, timber, ESG, etc) in North America and Europe.
  • Hotel: Our hotel strategy, while presently a small portion of our portfolio and strategic focus, seeks to finance, develop and/or acquire high quality hotel properties in the limited service, full service and resort categories.

Investment principles & strategy

A deeply embedded culture of service, alignment and transparency is shared with over 200 like-minded foreign and domestic investment partners. As a significant co-investor in all programmes, USAA Real Estate maintains an ‘Investor First’ mindset.

A specialised approach is taken for each property sector, without losing sight of our:

Guiding Investment Principles:

  • Develop and acquire high-quality assets with strong elements of design, size, and access
  • Pursue assets with broad appeal to future institutional investors
  • Thoughtfully select assets in the best location
  • Maintain discipline concerning replacement cost.
  • Value investing is executed with a disciplined and repeatable process, creating superior risk adjusted returns across a range of different property types and risk profiles.

Value- Oriented Investment Programmes:

  • Providing a full range of equity and debt strategies with both USAA Real Estate and Square Mile initiatives
  • Together with Square Mile Capital and Investors Diversified Realty (IDR), USAA Real Estate offers an investment opportunity across the spectrum of private real estate strategies, powered by proprietary tools and patented technology that offers consistent and stable returns to clients
  • Ability to take quick action in response to market opportunities and conditions
  • Flexible ownership structures to optimise tax efficiency
  • Multiple exit strategies to enhance investor yields
  • Research-based portfolio construction process.