TIAA Global Asset Management successfully raised $1.25 billion from investors to close out its T-C U.S. Super Regional Mall Fund (U.S. SRM Fund.)

The pension fund asset management firm said it obtained capital commitments from several domestic and foreign institutional investors as well as TIAA’s General Account. With leverage, the equity commitments would enable the fund to target a portfolio of approximately $2.5 billion.

TIAA Global Asset Management is one of the leading retail investors in the U.S. with a $15 billion, 64 million-square-foot equity and debt portfolio comprised of malls, grocery anchored centers and urban retail locations.

“Super-regional malls have proven to be a distinctly strong and stable performer throughout multiple cycles. They have demonstrated high NOI growth, low volatility compared to other property sectors, and a history of out-performing the NCREIF Property Index1,” said Suzan Amato, managing director at TIAA Global Asset Management.

“We believe that U.S. super-regional malls present a sound long-term investment given the current lack of mall construction and the shift towards consumers seeking entertainment experiences outside the home,” added Scott Kempton, managing director and the fund’s portfolio manager. “These assets are unique, hands-on environments, often offering extensive food hall and fine dining options, as well as movie theatres and other attractions that can ultimately help drive traffic and sales.”

To date, U.S. SRM Fund has invested approximately $685 million and is seeking additional assets, though TIAA did not identify any potential investments.

It is worth noting that last month, TIAA’s General Account purchased a 49% interest in a joint venture, Fashion Show Holding I LLC, which holds a retail property located in Las Vegas, Nevada. The account purchased its 50% interest for $1.2 billion from General Growth Properties, which continues to hold the remaining interest.

Fashion Show is a 1.867 million-square-foot super regional mall that was 99% leased as of year-end 2015.

The property is encumbered by $411.1 million of mortgage loans, one with a 4.03% interest rate, maturing Nov. 1, 2024, and another for $1.9 million with an interest rate of 6.06% maturing Nov. 15, 2021.