TIAA-CREF and the A$71 billion ($71.7 billion) Future Fund, Melbourne, Australia, formed a joint venture to co-invest in real estate, said John Panagakis, managing director and head of asset management business development at TIAA-CREF.
The new joint venture will target U.S. core-plus and value-added properties in central business districts and Class A suburbs, said Phil McAndrews, TIAA-CREF managing director and head of real estate portfolio management. TIAA-CREF will be investing from its general account. TIAA-CREF could not reveal the size of Future Fund’s commitment to the joint venture.
As part of the deal, Future Fund is buying a 50% interest in 685 Third Ave., New York, a building TIAA-CREF bought last year for $190 million.