TIAA-CREF and its subsidiary. GreenWood Resources (GWR) announced the close of the $667 million global timber company, Global Timber Resources LLC (GTRCo).
The newly formed company, which has capital commitments from investors including TIAA General Account, Caisse de dépôt et placement du Québec, AP2, and the Greater Manchester Pension Fund, will be an addition to TIAA-CREF Asset Management’s growing $124 billion global asset management platform, and will invest in timberland assets across North America, Latin America, Europe and Asia. GTRCo will focus on meeting the growing global demand for wood and forestry products through the development and management of sustainable timber plantation assets located in key geographies.
“We believe the macroeconomic fundamentals for timber investment are strong and see great potential for direct investment in emerging economies where we can benefit from low cost production and better proximity to growing demand,” said Jose Minaya, senior managing director and Head of Private Markets Asset Management, TIAA-CREF Asset Management.
GRW, which manages and develops sustainable tree farms within focused regions, and which has a vertically integrated management group which oversees the entire timber production chain from daily forestry operations to financial management, will manage GTRCo’s asset portfolio, bringing its total assets under management for institutional investors to $950 million.
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