TIAA-CREF and London-based Henderson Global Investors launched a new real estate investment company, TIAA Henderson Global Real Estate, which initially will have about £13 billion ($20 billion) in assets under management, according to announcements by both companies.
TIAA-CREF will acquire Henderson's North American real estate unit in addition to retaining its U.S.-based real estate business, which together have a combined AUM of about $43 billion, Tom Garbutt, chairman of the new joint venture and head of TIAA-CREF's global real estate unit, said in a conference call.
The London-based joint venture, which will have 220 employees, will be 60% owned by TIAA-CREF and 40% owned by Henderson. Financial terms were not disclosed.
Both TIAA-CREF's North American business and the newly launched company will be run “in a totally integrated way, regardless of the underlying ownership,” said James Darkins, managing director of property at Henderson and CEO of the new venture.
The combination of TIAA-CREF and TIAA Henderson will be one of the largest real estate asset management companies globally with four main sector strengths: office, retail, logistics and multifamily residential units, Mr. Garbutt added.
“We're quite skilled in navigating those areas throughout the world,” Mr. Garbutt said during the conference call. “Then if you consider that we've got debt and equity (expertise), and boots on the ground globally, we think we've got tremendous opportunities to grow.”
