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TH Real Estate debt platform closes 2016 with $4.4bn in originations across US and UK

Jack Gay DW

TH Real Estate ended 2016 with a total global commercial loan portfolio of $20.4bn across the industrial, office, retail, and multifamily/student housing sectors. During the calendar year the firm closed 62 commercial loans in the US and UK with an aggregate value of more than $4.4bn.

Highlights in the US included a $400m financing on four class-A office buildings in Washington DC and a $320m financing of Country Club Plaza, a 1.3 million sq ft open-air mixed-used development in Kansas City, MO. In the UK, highlights include a £95m loan for a London office portfolio and a £47m senior loan secured on logistics assets in Greater London.

“We’ve had a strong finish to the year and expect healthy debt markets to continue into 2017.” said Jack Gay, TH Real Estate’s Global Head of Debt. “Mortgages in the US and UK continue to offer good relative value versus other fixed income products. Looking ahead, we are targeting an increase in loan origination across the risk spectrum.”

TH Real Estate also held the final close of its inaugural UK Debt Fund, having raised over £250m from a range of UK, European, Asian and US investors. The Fund closed the year with a strong portfolio of 10 investments, exceeding targets.

The platform also originated $800bn in subordinate debt, an area of increased focus and collaboration with outside investors. An extension of a joint venture between TIAA and the Korean Teachers Credit Union was finalised in December. TIAA and KTCU will contribute up to a combined $1bn to invest in US commercial real estate.

“We believe that debt is an attractive investment the UK and Europe as it holds the potential to deliver predictable returns from contractual cash flows, insulated from market volatility,” said Christian Janssen, Head of Debt, Europe, TH Real Estate. “We have numerous deals in the pipeline for early 2017 and look forward to continuing to expand the UK platform and enter new European markets.”

TH Real Estate is a real estate investment management holding company owned by Teachers Insurance and Annuity Association of America (TIAA). TH Real Estate securities products distributed in North America are advised by UK regulated subsidiaries or TIAA-CREF Alternatives Advisors, LLC, a registered investment advisor and wholly owned subsidiary of TIAA, and distributed by Teachers Personal Investors Services, Inc., member FINRA. Issued by Henderson Real Estate Asset Management Limited, 201 Bishopsgate, EC2M 3BN. Authorised and regulated by the Financial Conduct Authority. TH Real Estate is a name under which Henderson Real Estate Asset Management Limited provides investment products and services. Past performance is not a guide to future returns. The value of investments and any income will fluctuate (this may be partly be the result of exchange rate fluctuation) and investors may not get back the full amount invested. Where opinions have been expressed, they are based on current market conditions and are subject to change without notice. C37755

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