Nuveen Global Cities REIT Inc., a publicly registered non-traded real estate investment trust, has registered a $5 billion follow-on offering with Securities and Exchange Commission.
The REIT expects to continue to invest in stabilized, income-oriented commercial real estate properties located in the United States, and to a lesser extent, Canada, Europe and the Asia-Pacific region, and real estate-related assets.
Nuveen Global Cities REIT’s $5 billion initial offering was declared effective by the Securities and Exchange Commission in January 2018. The REIT raised $129.6 million in investor equity as of mid-December 2020 and owns a $515.9 million property portfolio that was 98 percent leased as of November 30, 2020. The company also holds $49.9 million in investments in international affiliated funds, and $39 million in real estate-related assets.
Like its initial offering, Nuveen Global Cities REIT’s follow-on plans to offer $4 billion in Class T, Class S, Class D, and Class I shares of common stock, as well as $1 billion in distribution reinvestment plan shares. Shares will be priced at the net asset value per share, updated monthly, plus applicable fees and commissions.
The prices per share below use the NAV per share for November 30, 2020.
According to the preliminary prospectus, Class T shares are priced at $10.82 each and include a 3 percent selling commission, a 0.5 percent dealer manager fee, and an annual advisor stockholder servicing fee of 0.65 percent, and an annual dealer stockholder servicing fee of 0.20 percent. The minimum initial investment is $2,500.
Class S shares are priced at $10.80 each and include a 3.5 percent selling commission and an annual 0.85 percent stockholder servicing fee. The minimum initial investment is $2,500.
Class D shares, priced at $10.52 each, have no selling commissions and include an annual 0.25 percent stockholder servicing fee. The minimum initial investment is $2,500.
Class I shares are initially priced at $10.46 each and have no selling commissions, dealer manager fees, or stockholder servicing fees. The minimum initial investment for Class I shares is $1 million.
Nuveen Securities LLC will serve as the offering’s dealer manager.
Nuveen is the asset management subsidiary of the Teachers Insurance and Annuity Association of America, a retirement system for the nation’s higher education and research communities and one of the largest retirement systems in the United States with approximately $1.1 trillion of assets under management. Nuveen is one of the largest alternative-asset managers in the world with more than $200 billion of alternative assets invested in real estate, real assets (e.g., farmland, timberland), private equity and private debt.