TIAA-CREF acquires full ownership of TIAA Henderson Real Estate

TIAA-CREF is to acquire the remaining ownership interest in TIAA Henderson Real Estate (“TH Real Estate”) from its joint venture partner, Henderson Global Investors (“Henderson”) for GBP80 million.

The acquisition increases TIAA-CREF’s ownership stake in the joint venture established in April 2014 from its current 60 percent to 100 per cent.
 
TH Real Estate is a global real estate investment management company that pursues core and value-add investment in all major sectors of commercial real estate. It will operate as a stand-alone subsidiary within TIAA-CREF’s Asset Management multi-boutique platform. TH Real Estate will have independent executive leadership and investment teams.
 
Real estate has been a key part of TIAA-CREF’s investment platform since 1934 and represents USD82 billion in assets under management, as of March 31, 2015. TIAA-CREF believes that direct access to real estate strategies offers individual and institutional investors access to attractive long-term investment opportunities.  In addition, TH Real Estate strengthens and further diversifies the TIAA General Account, which serves as a foundation for the savings and lifetime income payments for millions of clients.
 
“This investment is an exciting step in our long-term plan to expand our asset management business,” says Robert G Leary, executive vice president and president of asset management, TIAA-CREF. “TH Real Estate offers our clients expanded investment opportunities through a flexible, well-capitalized and integrated global platform.”
 
TH Real Estate has approximately USD26 billion in assets under management, including assets in Europe, Asia and North America. Since its launch, TH Real Estate has made 67 acquisitions worth more than USD3.7 billion. The venture also established itself as an independent, successful global real estate investment manager, raising more than USD1.3 billion of new equity mandates and securing USD3.6 billion in capital recommitments from closed-end fund investors.
 
“Today’s news underscores our long-term commitment to real estate, an asset class that has served our clients well for many years,” says Tom Garbutt, head of TIAA-CREF global real estate and chairman of TH Real Estate. “We are well-positioned to capitalize on the many attractive opportunities we see through our world-class investment platform.”
 
Andrew Formica, chief executive of Henderson, says: “Our decision to sell our 40 percent holding in TH Real Estate to TIAA-CREF will give them the best possible opportunity to grow their business. We will retain a strong commercial relationship with TH Real Estate, as they will continue to sub-advise our highly successful Henderson UK Property OEIC.”
 
“We have created a truly global offering by entering new markets and geographies, launching new funds and investing alongside clients and partners,” said James Darkins, chief executive at TH Real Estate. “Clients will benefit from our streamlined structure as we continue to provide unwavering service and access to excellent real estate investment opportunities.”