The Second Swedish National Pension Fund (AP2) committed another $750 million to agricultural real estate investments in the U.S., Australia and Brazil. The allocation is part of last month’s initial $1.4 billion raise for TIAA-CREF’s Global Agriculture II farmland investment company.
The follow-on investment comes after AP2 committed $450 million for a 23% stake in TIAA-CREF’s first Global Agriculture investment company between 2011 and 2012. The first Global Agriculture fund also invests in cropland in the U.S. Brazil and Australia, and was valued at $2.99 billion at the close of 2013.
Earlier this month, TIAA-CREF agreed to purchase 30,959 acres of farmland in Hendry County, Fla. from Alico Inc. for $91.4 million.
AP2 has also invested $100 million for an 11% stake in Teays River Investments LLC, a Zionsville, Ind. manager focused on U.S. agricultural real estate and agribusinesses. Teays River Investments portfolio was valued at $931.4 million as of June 30. ■
© 2014 Farmland Investor Letter All rights reserved.