TIAA-CREF, Henderson form investment co.

TIAA-CREF and Henderson Global Investors, one of Europe’s largest investment managers, are launching a new global real estate investment management company, TIAA Henderson Global Real Estate.
The new company will offer clients global real estate investment opportunities while helping to accelerate the growth of each firm’s real estate business.
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 organization.
In a related transaction, TIAA-CREF is acquiring 100 percent of Henderson’s U.S. 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.
The combined total of real estate assets under management for TIAA-CREF and the new venture is $63 billion.
TIAA Henderson Global Real Estate will create a platform with significant scale, enhancing access to investment opportunities and debt markets, and increasing capacity to develop and offer new products.
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 percent interest and Henderson a 40 percent interest in the new venture.
TIAA-CREF and Henderson have agreed to explore other strategic opportunities beyond the real estate sector.
Select Henderson mutual funds are currently available through TIAA-CREF’s institutional retirement and retail brokerage platforms.
The companies will also explore ways to further capitalize on other product and service capabilities that each party may offer.
Pending regulatory approvals and customary conditions, the transaction is expected to close in the first quarter of 2014.
TIAA Henderson Global Real Estate will have exclusive rights to offer direct property and property debt investments outside of North America for both firms.
TIAA-CREF will retain its North American real estate business, which supports its retirement plans, and will also provide real estate investment management services for the new venture.
Under the agreement, TIAA Henderson Global Real Estate will launch a new business initiative in commercial real estate debt, including co-investment from TIAA-CREF.
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 officer. 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.”