Investors - JANUARY 20, 2017

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TH Real Estate forms new JV with Korean Teachers’ Credit Union

by Andrea Waitrovich

The Korean Teachers’ Credit Union and TH Real Estate have agreed to establish a new joint venture where both parties will contribute up to a combined $1 billion to invest in U.S. commercial real estate loans. TH Real Estate’s contributions to the joint venture are on behalf of the TIAA General Account.

“The low interest-rate environment has investors looking for yield and for defensive investments at this mature stage in the real estate cycle,” said Jack Gay, TH Real Estate’s global head of debt, in a statement. “We continue to see strong demand from foreign capital looking for opportunities in the U.S., which appear to be especially attractive on relative basis, given global trends. Mezzanine loans in particular hold the potential to offer returns that are very close to equity returns.”

The agreement expands upon an existing relationship, which has invested more than $950 million in U.S. commercial real estate debt since 2014. In 2014, the parties co-inv

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