TIAA-CREF said the combination strengthens the size, geographic diversification and scalability of TIAA-CREF’s natural resources platform and underscores the firm’s commitment to sustainable environmental practices.
The company explained Timber assets can serve as a source of portfolio diversification and a potentially stronger hedge against inflation as compared to publicly traded equities and fixed income investments. Macroeconomic conditions, including a growing population and increasing demand for timber and biofuels, make this asset category a compelling long-term investment.
With the addition of GWR, timber investments owned or managed by TIAA total approximately $1.8 billion, with investments covering 840,000 acres around the world in North America, Latin America, South America, Central Europe, Asia and Oceania. The company will join TIAA-CREF as a subsidiary. GWR’s existing management team will remain with the company, and GWR will continue to manage current client assets. As part of the transaction, Clark Binkley, Ph.D. will join GWR as managing director and chief investment officer.