TIAA-CREF and Henderson Global Investors have combined their European and Asian real estate businesses to launch a £41.5bn (€48.6bn) global firm.
TIAA Henderson Global Real Estate will consist of TIAA-CREF’s European real estate business, Henderson’s European and Asia Pacific-based real estate businesses, and a new global distribution and client service organisation with a total of £41.5bn of assets under management.
In a related transaction, TIAA-CREF is paying a total of £114.2m for 60% of the JV and 100% of Henderson’s US real estate business.
TIAA-CREF will continue to manage its own North American real estate business, and also provide investment management services for the new venture.
A joint board of directors will oversee an experienced management team, combining the expertise from both TIAA-CREF and Henderson.
TIAA-CREF will hold a 60% interest and Henderson a 40% interest in the new venture.
Upon closing, Tom Garbutt, head of TIAA-CREF global real estate, will become chairman of the new company, and James Darkins, managing director, property at Henderson will become the chief executive.
The company will be headquartered in London with offices in Europe, Asia Pacific and North America.
“We believe there are compelling growth opportunities in global real estate,” said Garbutt.
“This new venture will leverage TIAA-CREF’s financial strength and long-standing real estate investment capabilities together with Henderson’s expertise and wide array of real estate investments in Europe and Asia Pacific.”
Darking said: “The combination of TIAA-CREF’s and Henderson’s European and Asian real estate interests create a new powerhouse in global real estate.
“Between us, we have the scale and capital resources to serve the real estate investing needs of our existing clients, as well as create exciting new opportunities to co-invest alongside them around the globe.”
