Henderson links with US rival to form £13bn property fund
Monday 24 June 2013
The part-owner of the Westfield Stratford City shopping centre today struck a deal to create a £13 billion property fund after joining forces with a larger transatlantic rival.
Fund manager Henderson is spinning off £11 billion of European and Asian property from its Global Real Estate arm into a new joint venture with TIAA-CREF, a Fortune 100 giant whose roots go back to 1918 and which has £342 billion of assets under management. Henderson is also selling its £1.7bn US portfolio to TIAA-CREF and will receive a total of £114.2 million as a result of the two transactions.
It will own 40 per cent of the new company, to be called TIAA Henderson Global Real Estate, with TIAA-CREF owning the other 60 per cent. The deal enables Henderson to focus on its core global and European equity and fixed income businesses, while the new joint venture has access to capital from the US firm.
The deal marks another move in the consolidation of property investment management, with capital scarcer and more competition from the likes of sovereign wealth funds. It comes a month after Larry Fink’s giant BlackRock snapped up MGPA to expand its Asian presence. CBRE bought ING’s real estate arm in 2011.
JPMorgan analyst Rae Maile said: “This is a strategically sensible deal, in our view, as it addresses the changed - and more capital-intensive - nature of direct property investment and it strengthens Henderson’s balance sheet.”
Henderson chief executive Andrew Formica said: “Henderson has long recognised that its property business would benefit from greater scale and access to capital to accelerate its future growth.”
Industrial property specialist Segro today confirmed talks with Canada’s Public Sector Pension Investment Board over funnelling its European assets into a joint venture that the firm would manage while retaining a 50% stake.
- 1 Jeremy Clarkson 'sees no problem' with his racist language on Top Gear, says BBC
- 2 'Alien thigh bone' on Mars: Excitement from alien hunters at 'evidence' of extraterrestrial life
- 3 Richard Dawkins on babies with Down Syndrome: 'Abort it and try again – it would be immoral to bring it into the world'
- 4 London restaurant 34 creates champagne glass modelled on Kate Moss’ left breast
- 5 ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
'Alien thigh bone' on Mars: Excitement from alien hunters at 'evidence' of extraterrestrial life
Russell Brand opposes anti-Semitism after death threats: 'We must disavow all forms of prejudice that lead to exclusion and execution'
James Foley 'beheaded': Isis video shows militant with British accent 'execute US journalist' – as hunt begins for killer
ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
Microbial life found living on the exterior of the International Space Station, say reports
Richard Dawkins on babies with Down Syndrome: 'Abort it and try again – it would be immoral to bring it into the world'
Scottish independence: English people overwhelmingly want Scotland to stay in the UK
Isis threat: Cameron wants an alliance with Iran
Michael Brown shooting: Chaos erupts on the streets of Ferguson after autopsy shows teenager was shot six times – twice in the head
Bin bag full of cats' heads discovered near Manchester's Curry Mile
Disgusting, frustrating, but intriguing: how the country really feels about its politicians
iJobs Money & Business
£550 - £650 per day: Orgtel: Business Analyst - Traded Credit Risk - Investmen...
£55000 per annum: Harrington Starr: A financial software vendor at the forefro...
£600 per day: Harrington Starr: .NET Developer C#, WPF,BLL, MSMQ, SQL, GIT, SQ...
£65000 per annum: Harrington Starr: A financial software vendor at the forefro...