TIAA-CREF takes full control of TH Real Estate

TIAA-CREF, the New York-based real estate investment and management firm, has agreed to acquire the remaining ownership interest in TH Real Estate from its joint venture partner, London-based investment manager Henderson Global Investors.

TIAA-CREF will pay £80 million (€112 million; $122 million) for Henderson’s 40 percent holding in the London-based real estate asset management joint venture, taking its ownership stake to 100 percent.

TH Real Estate was officially formed last year, following TIAA-CREF’s purchase of Henderson’s US business.

TH Real Estate currently has $26 billion in assets under management across 50 funds and mandates. Since its launch, TH Real Estate has made 67 acquisitions valued at more than $3.7 billion. The venture also raised more than $1.3 billion of new equity mandates and securing $3.6 billion in capital recommitments from closed-end fund investors.

TH Real Estate pursues core and value-add investment in all major sectors of commercial real estate. After the sale, TH Real Estate will operate as a stand-alone subsidiary within TIAA-CREF’s asset management multi-boutique platform, but will have independent executive leadership and investment teams.

“This investment is an exciting step in our long-term plan to expand our asset management business,” said Robert 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.”

“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,” added Andrew Formica, chief executive of Henderson.

The transaction is expected to close in the second quarter of 2015, pending regulatory approvals.