March 18 (Reuters) - Australian superannuation fund Rest

said on Wednesday it will invest up to $250 million in a U.S.

retail property fund managed by Nuveen Real Estate, as it looks

to expand exposure to income-generating assets and diversify its

portfolio.

The commitment will be made to the U.S. Cities Retail Fund

(USCRF), which invests in neighborhood shopping centres across

major metropolitan areas in the United States.

The fund currently holds 10 retail properties in cities

including Austin, Philadelphia and San Diego, with five

additional shopping centres recently secured for inclusion in

the portfolio.

Rest said the investment is expected to deliver stable,

risk-adjusted returns across market cycles for its more than 2

million members, while strengthening diversification within its

property portfolio.

Nuveen launched USCRF in 2018 and recently completed a $330

million capital raise, in which Rest was a major participant.