Swedish fund, AP2, and Greater Manchester Pension Fund (GMPF) have each committed $50 million to TIAA-CREF’s newly launched Global Timber Resources LLC (GTR).
Launched through TIAA-CREF’s subsidiary, Greenwood Resources – a global timber management company, GTR will focus on investments in timberland assets across various regions including North America, Latin America, Europe, and Asia.
This marks the first timber-related investment for GMPF within its special opportunities portfolio, and a spokesman for the fund commented, “GMPF has no specific allocation to timber-related funds within its overall investment strategy, but such investment opportunities may be considered in the future.”
TIAA-CREF has been investing in timber and timber-related assets since 1998 building a global portfolio of timber assets of more than $2 billion. Greenwood Resources manages approximately $1.5 billion in assets, including the capital committed to GTR, on behalf of institutional investors. Both TIAA-CREF and Greenwood are committed to sustainable investment practices and follow guidelines set forth by the Forest Stewardship Council. TIAA-CREF is also a founding member of the Principles for Responsible Investment in Farmland launched in September 2011.
Commenting on the timber investment space, Jose Minaya, senior managing director and head of private markets asset management at TIAA-CREF said, ““The macroeconomic fundamentals for timber investment are strong, and we see great potential for direct investment in emerging economies where we can benefit from low-cost production and better proximity to growing demand.”
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