Nuveen Real Estate is one of the largest investment managers in the world with $129 billion 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 80 years of real estate investing experience and more than 550 employees* located across over 25 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 287 real estate investment professionals, supported by a further 260 Nuveen employees.
Source: Nuveen, 31 Mar 2019.
Office: Europe’s economic recovery is translating into improved demand for space. Prime rental growth is expected almost everywhere, except for London and Warsaw. Core London markets could see rental decline over the next couple of years, particularly if the economy slows and the Brexit process yields a negative outcome for businesses. The markets with catch-up potential are notably in Southern Europe, however, rents in Dublin, Brussels and Paris are still below their last cycle peaks. Net effective rents are improving, and developers are more confident to start schemes speculatively. However, the situation is nothing like before the Global Financial Crisis and many centres are surprisingly supply disciplined. The City of London is an exception, although the future speculative pipeline has been muted after the Brexit referendum. If leasing demand continues at current rates, there may be an absence of Grade-A supply in a little over two years.
Retail: The contrasting performance of the European retail markets continues, with diverging pricing trends across countries and among retail sub-sectors. The UK market is the first to show signs of occupier distress, the impact on Western Europe is still not apparent, and the less mature online markets of Southern and Eastern Europe are projected to see stronger rental growth over the short-term horizon. Retailer distress in the UK has fed through to pricing, with first signs of yields softening for both prime and secondary shopping centres. Due to a lack of deals, it is weaker investment sentiment that is driving pricing, rather than transactional evidence. The variance between the retail sub-sectors highlights disparities in growth factors across asset classes, and further demonstrates that sector performance is far from uniform. European outlet malls continue to outperform with strong turnover performance, continued investor appetite and increasing values. Yields have sharpened over the past year as a result of increased transactional activity and good-quality assets coming to the market.
Access to retail product is divided; lower quality product is still hard to shift even in very competitive markets such as Germany or Sweden, and pricing seems generally appropriate given the subdued fortunes of such assets in a low-growth environment. Investors still refrain from heedlessly plunging into risk, as they did in the last cycle. With limited prime product available, investment activity is constrained. In most markets, retail development levels remain in check, which means that the pool of investable prime assets is growing quite slowly.
Logistics: With low vacancies and sharp yield compression, the logistics sector has received a lot of positive press over recent years, although it has not translated into widespread rental growth. In some pockets of the market, rents have been rising and incentives have fallen to record lows. Development of new space has picked up, leaving the occupier market exposed to an unexpected disruption of the business cycle. Rental growth has remained weaker than the widespread undersupply of space implies. We expect rental growth to accelerate, but also caution that rents will only rise in key locations, where occupiers have limited alternative locations to divert to. Logistics is so popular, that weak assets are sold at prices that don’t reflect risk. Some logistics investors show signs of irrational exuberance, as pricing differentials between locations and qualities are being eroded.
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 performance 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 embedded 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 strategies, we have developed our range of solutions to offer the resilient, enhanced and debt 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 protection against short-term capital cycles.
COMPLIANCE STATEMENT All information is as at 31 Dec 2018 and sourced to Nuveen Real Estate. This profile is intended solely for the use of professionals and is not for general public distribution. The information contained herein was up to date at the time of producing and is subject to change. This information is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy or sell securities, and is not provided in a fiduciary capacity. This document is not directed at or intended for any person (or entity) who is citizen or resident of (or located or established in) any jurisdiction where its use would be contrary to applicable law or regulation [or would subject the issuing companies or products to any registration or licencing requirements]. Nuveen Real Estate is a name under which Nuveen Real Estate Management Limited provides investment products and services. Nuveen Real Estate is an investment affiliate of Nuveen, LLC (“Nuveen”). Issued by Nuveen Real Estate Management Limited (reg. no. 2137726), (incorporated and registered in England and Wales with registered office at 201 Bishopsgate, London EC2M 3BN) which is authorised and regulated by the Financial Conduct Authority to provide investment products and services.
News from Nuveen Real Estate [Europe]
TH Real Estate’s European Cities platform has acquired De Haagsche Zwaan
TH Real Estate, on behalf of its European Cities platform has purchased a logistics development
We have completed the final renovation phase of Gropius Passagen in Berlin
TH Real Estate has successfully completed an extensive revitalisation of the Erlangen Arcaden
TH Real Estate, on behalf of the Cityhold Office Partnership, has acquired an iconic development covering 28,262 sqm in the Morland Mixité Capitale Parisian urban regeneration development, located in the heart of Paris, from Société Parisienne du Nouvel Arsenal, represented by Emerige.
News from IPE Real Assets
Getafe retail park sold by KKR two years after purchase
Vehicle to target value-add, opportunistic assets in Spain, Portugal and Italy
Central Edinburgh scheme due for completion in 2021
Manager raises €200m for fund from German clients
Equity takes Logistis vehicle to €1.7bn
White Papers / Research from Nuveen Real Estate [Europe]
The long-awaited upturn in European economic sentiment in early 2018 unfortunately proved short lived. Whilst political risks are never far away on the continent, it has been geo-political events in the United States, China and the United Kingdom (U.K) which combined have engineered a European slow-down.
Think European cities: Trends and tactics 2019 outlook
THINK Global: Outlets download
Designer outlets have been one of the most widely misunderstood, but strongest performing, real estate sectors in Europe over the past decade. Relatively speaking, they thrived during the global economic downturn.
Europe has emerged from hibernation and is enjoying a synchronised upturn. Brushing aside geo-political concerns, 2017 was the best year for Eurozone growth in a decade, growing by an impressive 2.5%.
Putting the Spanish crisis aside, momentum in the European economy has been very strong. This is most apparent in employment where the latest surveys suggest Europe is creating jobs at the same pace as during the pre-financial crisis boom. This is generating a boost to income, which is supporting stronger consumption and investment.
Analysis from IPE Real Assets
European real estate debt funds have matured over the past five years. They are getting bigger and more diverse
Six months after the Brexit vote, the prognosis for the UK’s office sector is still unclear, writes Russell Handy
The core open-ended fund market in Europe appears to have gained renewed momentum. Richard Lowe asks why the market has entered race mode
Is the market for pan-European open-ended funds about to enter a new phase of growth? We explore the appeal for both investors and managers
Investors such as BVK and WPV continue to search for opportunities, but they are also becoming more cautious, finds Barbara Ottawa