SWEDEN/US - Swedish pension buffer fund AP2 and US pension fund manager TIAA-CREF have formed a joint venture targeting agricultural real estate.
The funds will invest primarily in grain production assets in the US, Australia and Brazil.
AP2 will invest $250m while TIAA-CREF will serve as majority shareholder and administrator.
Officials at AP2 said the investment will serve to diversify the SEK220bn ($35bn) portfolio. TIAA-CREF, which managed a portfolio of $400bn, could not immediately be reached for comment.
"TIAA-CREF has a well-developed platform for agricultural investment where environmental considerations and social responsibility are integrated. The Second AP Fund has carried out a comprehensive sustainability analysis of TIAA-CREF's guidelines, policies and processes and considers that they are of very high quality," AP2 said in a release.
AP2 chief executive Eva Halvarsson added: "We anticipate that the newly established company's investments will promote productivity gains and long-term, well-managed and profitable agriculture that, in a sustainable manner, will help meet the growing global demand."
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