Henderson forms £41.5bn property ‘powerhouse’ with joint venture

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Henderson has struck a deal with financial services provider TIAA-CREF to create a real estate business running £41.5bn in property.

The joint venture, called TIAA Henderson Global Real Estate, will be formed after the two organisations combine their European and Asian real estate operations. Henderson, which owns 40 per cent of the joint venture, will receive cash proceeds of £114.2m.

In a related sale, Henderson will also sell its North American real estate business to TIAA-CREF.

The deal will allow the asset management house to focus on its global equities, European equities, absolute return, multi-asset and global fixed income activities.

Henderson property managing director James Darkins will head the venture, which will be staffed with more than 200 of Henderson’s property team along with employees from TIAA-CREF. TIAA-CREF global real estate head Tom Garbutt will be chairman.

Darkins says: “The combination of TIAA-CREF’s and Henderson’s European and Asian real estate interests creates a new powerhouse in global real estate.

“Between us, we have the scale and capital resources to serve the real estate investing needs of our existing clients, as well as create exciting new opportunities to co-invest alongside them around the globe.”

Henderson’s property business is focused on institutional investors, with Ainslie McLennan and Marcus Langlands Pearse’s £869.9m Henderson UK Property fund being the only portfolio aimed at retail investors.

McLennan and Langlands Pearse will continue to run the fund, while its investment process and style will not change because of the joint venture. Henderson adds that the fund remains “a key part” of its retail offering.