TIAA-CREF, the US financial services group, and London-based Henderson Global Investors have together launched a new global real estate investment management company, TIAA Henderson Global Real Estate, subject to regulatory approvals.

The new TIAA Henderson Global Real Estate vehicle will offer clients expanded investment opportunities in the global real estate market while helping to accelerate the growth of each firm’s real estate business. It will consist of 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 organization.

The new company, which is expected to launch in the first quarter of 2014, will provide access to global capabilities in the office, retail, logistics, multi-family, and commercial real estate debt sectors. 

Upon closing, Tom Garbutt, head of TIAA-CREF global real estate, will become chairman of the new company, and James Darkins, managing director, property at Henderson will become chief executive. The company will be headquartered in London with offices in Europe, Asia-Pacific and North America. TIAA-CREF will hold a 60 per cent interest and Henderson a 40 per cent interest in the new venture.

In a related transaction, TIAA-CREF is acquiring 100 per cent of Henderson’s US real estate business. TIAA-CREF will continue to manage its own North American real estate business, and also provide investment management services for the new venture.  The combined total of real estate assets under management for TIAA-CREF and the new venture is $63 billion. TIAA Henderson Global Real Estate will create a platform with significant scale, enhancing access to investment opportunities and debt markets, and increasing capacity to develop and offer new products, the firms said.

Henderson’s property business has around $19.2 billion in assets under management and currently employs some 200 staff across Europe, Asia-Pacific and North America.