TIAA-CREF And Henderson Global Investors Create New Global Real Estate Investment Management Company

  TIAA-CREF And Henderson Global Investors Create New Global Real Estate
  Investment Management Company

 Companies combine European and Asian real estate businesses to form leading
                             real estate venture

 Provides clients with new investment opportunities and expanded global reach

Business Wire

NEW YORK & LONDON -- June 24, 2013

TIAA-CREF, a leading financial services provider, and Henderson Global
Investors (“Henderson”), one of Europe’s largest investment managers, today
agreed to launch a new global real estate investment management company, TIAA
Henderson Global Real Estate. The new company 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.


  *TIAA Henderson Global Real Estate 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
  *The new company will provide access to global capabilities in the office,
    retail, logistics, multi-family and commercial real estate debt sectors.
  *In a related transaction, TIAA-CREF is acquiring 100 percent of
    Henderson’s U.S. 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
  *The combined total of real estate assets under management for TIAA-CREF
    and the new venture is $63 billion (£41.5 billion).^i
  *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.
  *A joint board of directors will oversee an experienced management team,
    combining the expertise from both TIAA-CREF and Henderson.
  *TIAA-CREF will hold a 60 percent interest and Henderson a 40 percent
    interest in the new venture.
  *Interests will be aligned with clients through co-investment and seeded
    investment opportunities.
  *TIAA-CREF and Henderson have agreed to explore other strategic
    opportunities beyond the real estate sector. Select Henderson mutual funds
    are currently available through TIAA-CREF’s institutional retirement and
    retail brokerage platforms. The companies will also explore ways to
    further capitalize on other product and service capabilities that each
    party may offer.
  *Pending regulatory approvals and customary conditions, the transaction is
    expected to close in the first quarter of 2014.

TIAA Henderson Global Real Estate will have exclusive rights to offer direct
property and property debt investments outside of North America for both
firms. TIAA-CREF will retain its North American real estate business, which
supports its retirement plans, and will also provide real estate investment
management services for the new venture. Under the agreement, TIAA Henderson
Global Real Estate will launch a new business initiative in commercial real
estate debt, including co-investment from TIAA-CREF.

The new venture will pursue core and value-add investment opportunities in all
major sectors of international commercial real estate. It will also be
responsible for distribution and client servicing of real estate products
managed by TIAA-CREF for its institutional investors.

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 the chief executive officer. The company will be
headquartered in London with offices in Europe, Asia Pacific and North

“We believe there are compelling growth opportunities in global real estate,”
said Tom Garbutt, head of TIAA-CREF global real estate and chairman of the new
company. “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

“The combination of TIAA-CREF’s and Henderson’s European and Asian real estate
interests create a new powerhouse in global real estate,” said James Darkins,
chief executive officer of the new company. “Between us, we have the scale and
capital resources to serve the real estate investing needs of our existing
clients, as well as create exciting new opportunities to co-invest alongside
them around the globe.”

“This partnership enables TIAA-CREF to further diversify our investments into
new markets as we continue to expand our asset management business globally,”
said Roger W. Ferguson Jr., president and chief executive officer of
TIAA-CREF. “Real estate has been a key part of our investment platform since
1934. We are pleased to partner with Henderson as we launch this venture, and
together seek new opportunities on behalf of our clients.”

“Henderson has long recognized that its property business would benefit from
greater scale and access to capital to accelerate its future growth,” said
Andrew Formica, chief executive, Henderson Group plc. “We are delighted to
have a financially strong and stable partner in TIAA-CREF which shares our
strong commitment to serving clients’ needs. With their added expertise and
resources, I am confident that our clients and shareholders will benefit from
this relationship.”



TIAA-CREF ( is a national financial services organization
with $520 bn (c. £342.5 bn) in assets under management (at 31 March 2013) and
is the leading provider of retirement services in the academic, research,
medical and cultural fields.

The company’s global real estate team invests on behalf of leading
institutional investors, and individual investors, through retirement plans in
the U.S. nonprofit sector and its own general account. The company has
invested in public and private equity and debt real estate investments for
more than 70 years, dating back to its first commercial mortgage investment in
1934. TIAA-CREF’s real estate management team has an average of 25 years of
investment experience. The company has $44 bn (c. £29 bn) in private real
estate and commercial mortgage investments (at 31 March 2013) and is among the
largest real estate managers of U.S. institutional tax-exempt real estate

TIAA-CREF has received several recent industry accolades for its investment
performance. Lipper named TIAA-CREF as the 2013 Best Overall Large Fund
Company based on three-year risk-adjusted performance. The company was one of
36 large investment firms eligible for the award. ^ ii In addition, 97 percent
of the company’s mutual funds and annuities have an overall Morningstar rating
of three or more stars across all asset classes based on risk-adjusted
performance (43 percent three stars, 45 percent four stars and 9 percent five
stars, at 31 March 2013).^III In addition, TIAA-CREF was ranked 10th out of 62
mutual fund families in the 2012 Barron’s/Lipper fund family ranking, based on
asset-weighted performance.^IV

About Henderson:

Henderson Group plc (“Henderson Group” or “Group”) is the holding company of
the investment management group Henderson Global Investors ('Henderson').
Henderson Group's principal place of business is in London and since December
2003 it has been dual-listed on the London Stock Exchange and Australian
Securities Exchange (“ASX”). Henderson Group is a constituent of the FTSE 250
and S&P/ASX 100 indices. The Group is incorporated in Jersey and as of late
last year tax-resident in the UK.

Established in 1934, Henderson is a leading independent global asset
management firm. The company provides its institutional, retail and high
net-worth clients with access to skilled investment professionals representing
a broad range of asset classes, including equities, fixed income, property and
private equity. Henderson is one of Europe's largest investment managers, with
$104.6 bn (£68.9 bn) assets under management and employed approximately 1,000
people worldwide (at 31 March 2013).

Henderson has developed a significant property investment capability over the
past 30 years. Its property business has more than 500 underlying investors
and approximately c. $19.2 bn (£12.7 bn) in assets under management^i and it
currently employs over 200 staff across Europe, Asia Pacific and North
America. Its property business manages pooled and segregated accounts
targeting core and value-added returns across all commercial sectors,
Henderson also manages property funds with regional themes.

Past performance does not guarantee future results.

Investment, insurance and annuity products are not FDIC insured, are not bank
guaranteed, are not deposits, are not insured by any federal government
agency, are not a condition to any banking service or activity, and may lose

TIAA-CREF products may be subject to market and other risk factors. See the
applicable product literature, or visit for details.

TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal
Investors Services, Inc., members FINRA, distribute securities products.

You should consider the investment objectives, risks, charges and expenses
carefully before investing. Please call +1 877-518-9161 or log on to for product and fund prospectuses that contain this and
other information. Please read the prospectuses carefully before investing.

^I at 31 March 2013

^ii In calculating the awards, Lipper considered funds registered for sale in
the United State with at least 36 months of performance as of the end of the
calendar year of the respective evaluation year. Fund groups with at least
five equity, five bond, or three mixed-asset portfolios were eligible for an
overall group award. The award is given to the group with the lowest average
decile ranking of three years’ Consistent Return measure of the eligible funds
over the three-year period ended 30 Nov. 2012. TIAA-CREF was ranked among 36
fund companies.

^iii As of March 31, 2013, 43 percent of TIAA-CREF funds have three stars, 45
percent four stars and 9 percent five stars. The Morningstar ratings include
Retail, Retirement, Premier and Institutional fund share classes; CREF
Accounts and the Life Funds. 54 percent of our funds / accounts have an
overall rating of four and five stars and 97 percent are rated three or more
stars. Morningstar is an independent service that rates mutual funds and
variable annuities. The top 10 percent of accounts in an investment category
receive five stars, the next 22.5 percent receive four stars, and the next 35
percent receive three stars. Morningstar proprietary ratings reflect
historical risk-adjusted performance and can change every month. They are
calculated from the account’s three-, five- and 10-year average annual returns
in excess of 90-day Treasury bill returns with appropriate fee adjustments,
and a risk factor that reflects mutual fund/subaccount performance below
90-day T-bill returns. The overall star ratings are Morningstar’s published
ratings, which are weighted averages of its three-, five- and 10-year ratings
for periods ended 31 March 2013. Past performance cannot guarantee future
results. For current performance and rankings, please visit

^IV The rankings are quantitative, and are based on performance according to
Lipper data. Each fund family is given an asset-weighted score within the five
asset classes: U.S. Equity, World Equity, Mixed Asset, Taxable Bond and
Tax-Exempt Bond, and the asset class score is then weighted by its size within
the Lipper universe. In the five-year overall ranking, TIAA-CREF is ranked
29th out of 53 mutual fund families. TIAA-CREF does not qualify for the
10-year ranking. The rankings were published in the 11 Feb. 2013 print edition
of Barron’s.


Photos/Multimedia Gallery Available:



John McCool, +1-917 885 2852
TIAA-CREF Public Relations
Chad Peterson, +1 888 200 4062
TIAA-CREF Public Relations
For Henderson Property:
Gemma Bradley, +44 207 818 4441
Associate Director, PR, Property
For Henderson Group plc:
Richard Acworth, +44 207 818 3010
Head of Corporate Communications
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