January 20, 2017
TH Real Estate and the Korean Teachers’ Credit Union (KTCU) formed its third partnership, creating a $1 billion joint-venture partnership to invest in U.S. commercial real estate loans. The capital will be used for modest-leverage mezzanine and subordinate debt instruments, along with lower-rated, single-asset commercial-backed mortgage securities (CMBS).
TH Real Estate (the real estate investment/operations arm of TIAA Global Asset Management) has a 51% stake in the JV, while KTCU owns the remaining share. Jack Gay with TH Real Estate indicated that the reason for the new JV had to do with the continuing low interest rate environment, which is driving investors toward yield and “defensive investments at this mature state in the real estate cycle.”
Additionally, “we continue to see strong demand from foreign capital looking for opportunities in the U.S.,” Gay told PERE News.
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