NEW YORK CITY—TIAA-CREF said Tuesday it had acquired the remaining 40% of TIAA Henderson Real Estate it didn't already own. The financial services organization, with $82 billion in real estate assets under management, paid £80 million, or approximately US $122.5 million, to buy out its joint-venture partner, Henderson Global Partners.
TIAA and Henderson announced the JV in June 2013. Since then, it has pursued a strategy that combines core with value-add, making 67 acquisitions worth more than $3.7 billion. The venture also has raised more than $1.3 billion of new equity mandates and secured $3.6 billion in capital recommitments from closed-end fund investors. In all, TH Real Estate has about $26 billion in assets under management across Europe, Asia and North America.
TH Real Estate will operate as a stand-alone subsidiary within TIAA-CREF's asset management multi-boutique platform. It will have independent executive leadership and investment teams. Henderson CEO Anthony Formica says his firm will maintain “a strong commercial relationship with TH Real Estate,” ssince TH will continue to sub-advise Henderson UK Property OEIC.
Tom Garbutt, head of TIAA-CREF global real estate and chairman of TH Real Estate, says the JV buyout “underscores our long-term commitment to real estate, an asset class that has served our clients well for many years. We are well-positioned to capitalize on the many attractive opportunities we see through our world-class investment platform.” The acquisition is expected to close in the second quarter.
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