TIAA-CREF also agreed to buy Henderson’s US real estate business and will hold a 60 per cent interest and Henderson a 40 per cent interest in the new venture.
The two firms said the new company will offer their clients expanded investment opportunities in the global real estate market and help speed up growth of their real estate businesses.
TIAA Henderson will include TIAA-CREF’s European real estate business, Henderson’s European and Asia Pacific-based real estate businesses, and a new global distribution and client service organisation.
TIAA-CREF and the new venture will have $63bn of real estate assets under management.
Head of TIAA-CREF global real estate Tom Garbutt said, “We believe there are compelling growth opportunities in global real estate.
“This new venture will leverage TIAA-CREF’s financial strength and long-standing real estate investment capabilities together with Henderson’s expertise and wide array of real estate investments in Europe and Asia Pacific.”
Earlier this year TIAA-CREF bought a minority stake in Australian surfwear group Billabong.
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