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Janssen: More firepower, better control for TH Real Estate

TIAA-CREF’s takeover of TH Real Estate could lead to more firepower and better control of its lending business, says the firm's head of real estate debt Christian Janssen. TIAA-CREF increased its stake in the firm from 60% to 100% yesterday after paying £80m for Henderson Global Investors’ 40% interest in the business. TIAA-CREF and Henderson started the joint venture last year.

TIAA-CREF’s takeover of TH Real Estate could lead to more firepower and better control of its lending business, says the firm’s head of real estate debt Christian Janssen.

Christian Janssen
Christian Janssen

TIAA-CREF increased its stake in the firm from 60% to 100% yesterday after paying £80m for Henderson Global Investors’ 40% interest in the business. TIAA-CREF and Henderson started the joint venture last year.

TH Real Estate would now operate as a subsidiary within TIAA-CREF’s Asset Management platform with its own executive and investment teams.

Its independence would be preserved and nothing would change in the day-to-day operation of the business and there would be no commercial tie-in with TIAA-CREF’s US lending operation, said Janssen.

“There are great advantages to being owned by one parent with almost a trillion dollars under management and it’s simpler to execute under only one parent as opposed to two,” he said. “Overall, it’s a very powerful alignment.”

TH Real Estate’s plans for growth were also a better fit with TIAA-CREF’s long-term strategic planning, said Janssen.

Since launching last April, the firm has made 67 acquisitions in Europe, Asia and Australia valued at more than $3.7bn.

Its UK lending business has completed three loans this year totalling £200m. Its UK Enhanced Debt Fund is targeting £500m of equity and has completed its first close with £138m. It targets a 6-7% return investing in whole loans and selective mezzanine up to 75% LTV.

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