Henderson Group is selling its North American real estate business to Teachers Insurance and Annuity Association - College Retirement Equities Fund (TIAA-CREF), a United States non-profit pensions provider.
In a related deal, Henderson and TIAA-CREF are combining their European and Asian real estate businesses to form a joint venture, TIAA Henderson Global Real Estate, which will have assets under management of £13 billion (€15 billion). TIAA-CREF will own 60% of the venture and Henderson 40%.
Henderson says it will be a “simplified business” as a result of the transactions, with main strengths in global and European equities, absolute return, multi-asset and fixed income investment management.
Henderson's property business brought in revenues of £61.5 million in 2012, which was 14% of the company's revenues. Henderson says it will receive £114.2 million in proceeds as a result of the transactions.
Tom Garbutt, head of global real estate at TIAA-CREF, will become chairman of the joint venture and James Darkins, managing director of Henderson's direct property business, will become chief executive.
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