A small number of institutional investors including AP2, British Columbia Investment Management Corp. and the Caisse de Depot et Placement du Quebec formed an investment firm with TIAA-CREF to invest $2 billion in farmland, confirmed Abby Cohen, TIAA-CREF spokeswoman.
The limited liability company, TIAA-CREF Global Agriculture, is investing in major grain-producing regions, including the U.S., Australia, South America and Eastern Europe. TIAA-CREF has a “significant stake” in the company and an affiliate of TIAA, Teachers Advisors Inc., is the manager.
Terms are not being disclosed.
AP2 is investing about $250 million in the company and expects the investment to diversify its portfolio, according to an AP2 news release.
“We anticipate that the newly established company's investments will promote productivity gains and long-term, well-managed and profitable agriculture that, in a sustainable manner, will help meet the growing global demand,” said Eva Halvarsson, AP2's CEO, in the release.
Although TIAA-CREF Global Agriculture just closed to additional capital commitments, it has been making investments since April 2011. The company's existence was kept quiet until Monday.
Ulrika Danielson, spokeswoman for the 220 billion Swedish kronor ($31.2 billion) AP2, Gothenburg, Sweden, could not be reached by press time for comment.
Sarah Emilie Bouchard, spokeswoman for the C$159 billion (US$158.6 billion) Caisse de Depot et Placement du Quebec, Montreal, confirmed that the fund is investing US$250 million in the venture.
Gwen-Ann Chittenden, manager, corporate initiatives with British Columbia Investment Management, which has C$86.9 billion in assets, confirmed the investment but declined to comment on the amount committed.