TIAA-CREF will acquire the remaining 40% stake it doesn’t own in TIAA Henderson Real Estate, the London-based joint venture it launched a year ago with Henderson Global Investors, for £80 million ($119.7 million), the firms announced Tuesday.
The transaction should close by June 1, Henderson’s announcement said.
As of March 31, TIAA Henderson Real Estate had roughly $26 billion in assets under management in Europe, Asia and North America, up from $22.6 billion when the joint venture was launched a year ago.
Andrew Formica, Henderson’s CEO, said in a news release that his firm will retain “a strong commercial relationship with TH Real Estate,” which will continue to subadvise the Henderson U.K. Property OEIC fund, which has $5.3 billion in assets.
Separately, General Growth Properties agreed to sell 12.5% of the Ala Moana Center mall in Honolulu to TIAA-CREF for $454 million, after selling a stake to an Australian pension fund.
General Growth received $335 million at closing and the remaining $119 million will be paid next year after the property is redeveloped, General Growth said in its earnings statement Tuesday. General Growth sold 25% of the 2.2 million-square-foot mall to the A$80 billion AustralianSuper, Melbourne, in February for net proceeds of $907 million, which includes $237 million that will be paid next year.
Bloomberg contributed to this story.
