Fund manager Henderson and North American fund TIAA-CREF have joined forces to form a US$20 billion real estate investment management firm.
The new company will be called TIAA Henderson Global Real Estate and will combine both funds’ European real estate businesses and Henderson’s Asia Pacific property operation.
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The transaction is expected to close in the first quarter of 2014, subject to pending regulatory approvals and customary conditions.
Henderson will own 40% of the venture while the remaining 60% will be held by TIAA-CREF, with the US firm’s real estate head Tom Garbutt to take on the role of the chairman.
As part of the deal, Henderson is selling its North American real estate business, which has £1.7 billion worth of assets under management, to TIAA-CREF for £114.2 million.
Henderson will hold two of five seats on the board and TIAA-CREF will invest US$1.5 billion over the next five years.
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By GlobalDataTogether the joint venture will have around US$63billon assets under management.
TIAA-CREF head, Tom Garbutt, said: "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."
