TIAA Henderson has extended its designer retail outlet fund by 10 years through a replacement pan-European vehicle.
The European Outlet Mall Fund replaces Henderson Global Investors’ previous outlet fund, which expired in February and did not allow for straightforward extension.
TIAA-Henderson said 80% of unit holders elected to move to a new vehicle, which will run until 2024. Outgoing investors were redeemed with €260m – raised from existing investors in the fund. Remaining equity will be used for capital expenditure across the portfolio. A further €100m is waiting to be committed.
Aimed at institutional investors, Henderson launched the €1.5bn fund in 2004, with a 12% IRR. Henderson and pan-European institutional money backed the fund, which partnered mall developer and manager McArthurGlen. Investments were made in Austria, Belgium, Italy, France, Germany and the Netherlands. The fund currently has eight properties in Europe as well as an indirect holding in three UK outlet mall assets.
TIAA-Henderson fund manager Andrew Rich said the fund will continue to work with McArthurGlen across the existing portfolio as well as on new investments in Europe.
TIAA-CREF and Henderson Global Investors recently completed the merger of their European and Asian real estate businesses. The newly created joint venture TIAA Henderson Real Estate is 60% owned by TIAA-CREF and 40% by Henderson, with $71bn (€51.4bn) in assets under management.
