Old Mutual and Henderson planning to merge property funds
Old Mutual Global Investors and Henderson Global Investors are planning to merge the Old Mutual Property Fund, currently run by CBRE Global Investors, into the Henderson UK Property OEIC.
The merger is set to complete in January 2015, subject to regulatory and client approval.
Launched in December 2005 and managed by the same investment team since inception, the GBP437 million Old Mutual fund has met its objectives to provide capital growth and income from investment in a property portfolio.
The Henderson fund, managed by Ainslie McLennan and Marcus Langlands Pearse, currently has assets under management of approximately GBP2.3 billion. Based on existing figures, following the merger, the fund’s assets under management will increase to over GBP2.7 billion, with the number of properties in the portfolio increasing from 84 to 108 and the number of tenants from 407 to 577.
The merged fund will continue to be managed by TIAA Henderson Real Estate (TH Real Estate), the circa GBP16bn specialist real estate investment manager, which was created earlier this year following a merger between Henderson Global Investors’ real estate business and TIAA-CREF.
Julian Ide, chief executive of Old Mutual Global Investors, says: “Old Mutual Global Investors is committed to ensuring our fund range delivers the best outcome for our clients. Whilst we are pleased that our property fund has met its objectives since launch and performed strongly, we believe that it is in the best interest of clients to merge the fund into the Henderson UK Property OEIC as clients should benefit from a wider portfolio mix, as well as Henderson’s long standing expertise within this asset class.
“We have established a strong working relationship with CBRE Global Investors since the Old Mutual Property Fund was launched. I would like to thank that team for their valuable contribution over the last ten years.”
McLennan, says: “Clients in both funds will benefit from access to a larger and more diversified property portfolio, including a broader tenant mix.
“Our investment process will remain unchanged and we are already very familiar with the 24 properties currently held within the Old Mutual fund, which we view as providing a good fit with the Henderson UK Property OEIC.”