TIAA-CREF, Henderson Launch New $22.6B Asset Management Venture

LONDON—TIAA-CREF and Henderson Global Investors, one of Europe's largest investment managers, have closed on their joint venture announced last year to launch a real estate investment management company, TIAA Henderson Real Estate.

Seeded with a combined $22.6 billion of assets under management, the new company will target core and value-add investment opportunities in all asset classes. The joint venture be headquartered in London and 60% owned by TIAA-CREF and 40% owned by Henderson.

At the same time, TIAA-CREF has also completed the acquisition of Henderson's $2.6 billion North American property business.

TIAA-CREF sees the venture as part of its push to build a comprehensive global investment platform. Among other advantages, expanding the scale and scope of its global real estate business will allow the company to better target sophisticated institutional clients. "TH Real Estate will drive the growth of our real estate platform globally by expanding our footprint, service capabilities and access to new investment opportunities," says Tom Garbutt, head of TIAA-CREF global real estate and chairman of the new venture, in a prepared statement.

TIAA-CREF will continue to operate its own $48.2 billion global real estate platform, which includes assets it has purchased, real estate securities and private commercial mortgages. As for its newly-acquired North American property business, that will continue to operate out of Hartford, Conn. and Chicago with its current team. The business, which offers commingled funds and separate accounts for institutional clients, invests across the four primary real estate sectors in US core and value-add strategies. Currently it is emphasizing the apartment, student housing and medical office sectors.