GTRCo is a new company designed to invest in timberland assets across multiple geographies, including North America, Latin America, Europe, and Asia. It is principally focused on the development and management of sustainable plantation forestry assets to supply growing worldwide demand for wood and forestry products.
“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.
GreenWood Resources will manage the new company’s portfolio of timber assets. TIAA-CREF acquired majority ownership of GWR in 2012. GWR develops and manages sustainable tree farms in targeted regions and has a vertically integrated management group with professionals in investment and financial management, improved plant material strategies, and day-to-day forestry operations. The company, a holding of TIAA-CREF Asset Management, manages approximately $950 million in assets for institutional investors, which includes the $667 million of capital committed to GTRCo.
Today’s announcement builds on TIAA-CREF Asset Management’s $124 billion alternative investment platform focused on real estate, farmland, timber, infrastructure, energy, private equity and commodities.