Henderson and TIAA-CREF merge European property businesses

Henderson Global Investors and US asset manager TIAA-CREF have unveiled a combination of their European real estate businesses.

The new JV company - TIAA Henderson Global Real Estate - will combine TIAA-CREF’s existing European real estate business with Henderson’s European and Asia Pacific property operations.

The new venture will pursue core and value-add investment opportunities in all major sectors of international commercial real estate. TIAA Henderson Global Real Estate will hold the exclusive rights to offer direct property and property debt investments for both firms in all regions outside of North America.

TIAA-CREF will continue to manage its own real estate business in North America and, in a related transaction, will acquire 100% of Henderson’s US real estate business.

TIAA-CREF will hold a 60% stake in the new company, with Henderson holding the remaining 40%. The transaction is expected to close in the first quarter of 2014, subject to regulatory approval.

The transaction will see the new company hold total assets under management of £13 bn (€15.2 bn).

The new company will be headquartered in London with offices in Europe, Asia Pacific and North America. Tom Garbutt will be chairman of the new company. James Darkins will be the new company’s CEO.

Darkins believes the new venture will help accelerate the growth of each firm’s real estate business. 'The combination of TIAA-CREF’s and Henderson’s European and Asian real estate interests create a new powerhouse in global real estate,' he said.

'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.'