Henderson will have a 40% holding in the new firm, TIAA Henderson Global Real Estate, and will receive cash proceeds of £114.2m before deal costs.
Henderson will also sell its North American real estate business to TIAA-CREF.
The deal gives Henderson greater scale and access to capital, and enables TIAA-CREF to further diversify investments into new markets.
James Darkins, Chief Executive Officer Designate of TIAA Henderson Global Real Estate said: "The combination of TIAA-CREF’s and Henderson’s European and Asian real estate interests creates a new powerhouse in global real estate. 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."
The alliance will provide access to global office, retail, logistics, residential and commercial real estate debt sectors. It will be overseen by a board of directors from both Henderson and TIAA-CREF.
The transaction is expected to complete in Q1 2014.
Last week Hermes made a new hire ahead of a real estate debt push.
