PROPOSED TRANSACTION TO MERGE OLD MUTUAL PROPERTY FUND INTO THE HENDERSON UK PROPERTY OEIC
Old Mutual Global Investors and Henderson Global Investors have today announced a transaction whereby the Old Mutual Property Fund, currently run by CBRE Global Investors, will merge into the Henderson UK Property OEIC. The merger is set to complete in January 2015, subject to regulatory and client approval.
Launched in December 2005 and managed by the same investment team since inception, the £437 million* Old Mutual fund has met its objectives to provide capital growth and income from investment in a property portfolio.
The Henderson fund, managed by Ainslie McLennan and Marcus Langlands Pearse, currently has assets under management of approximately £2.3 billion*. Based on existing figures, following the merger, the fund’s assets under management will increase to over £2.7 billion*, with the number of properties in the portfolio increasing from 84 to 108* and the number of tenants from 407 to 577*. Both sets of investors should benefit from being part of a larger, more diversified portfolio.
The merged fund will continue to be managed by TIAA Henderson Real Estate (TH Real Estate), the c. £16bn specialist real estate investment manager, which was created earlier this year following a merger between Henderson Global Investors’ real estate business and TIAA-CREF.
Julian Ide, CEO Old Mutual Global Investors, comments:
“Old Mutual Global Investors is committed to ensuring our fund range delivers the best outcome for our clients. Whilst we are pleased that our Property Fund has met its objectives since launch and performed strongly, we believe that it is in the best interest of clients to merge the fund into the Henderson UK Property OEIC as clients should benefit from a wider portfolio mix, as well as Henderson’s long standing expertise within this asset class.
“We have established a strong working relationship with CBRE Global Investors since the Old Mutual Property Fund was launched. I would like to thank that team for their valuable contribution over the last ten years.”
Ainslie McLennan, says:
“Clients in both funds will benefit from access to a larger and more diversified property portfolio, including a broader tenant mix.
“Our investment process will remain unchanged and we are already very familiar with the 24 properties currently held within the Old Mutual fund, which we view as providing a good fit with the Henderson UK Property OEIC.”
”We have access to the specialist expertise of TH Real Estate and a dedicated team of 10, which includes the recent appointments of Andrew Friend Fund Director, Rob McQueen Senior Portfolio Manager and Manreet Randhawa Fund Analyst.”
* As of 30 September 2014
Henderson Global Investors: 020 7818 4222
Old Mutual Global Investors: 020 7332 7676
Notes for Editors:
About Old Mutual Global Investors:
Old Mutual Global Investors has grown strongly since its creation in August 2012 and now has assets under management of £17 billion (as at 30 June 2014). The team consists of 183 industry professionals, including a team of 48 investment professionals. As part of Old Mutual Group it has a strong financial parent to support the activation of its business strategy. Old Mutual Global Investors is the asset management division of Old Mutual Wealth. To find out more information please go to: www.omglobalinvestors.com
About the Henderson UK Property OEIC:
To achieve a high income together with some growth of both income & capital through investment primarily in commercial property and property related assets. Other investments may include money market instruments, derivatives and forward foreign exchange contracts.
The fund ended September holding 15.6% in cash, 80.7% in bricks and mortar, and 3.7% in property securities. The geographical focus is biased towards the South East at 64.4%. The sector breakdown shows retail at 27.4%, industrials 15.5%, offices 29.5% and alternatives 8.3% which includes leisure. The weighted unexpired lease term is 10.5 (including student accommodation) years and the vacancy rate stands at 1.6%.
About Henderson Global Investors:
Henderson is a global asset manager with a strong reputation dating back to 1934. Henderson manages £74.7 billion (as at 30 June 2014) of assets on behalf of clients in the UK, Europe, Asia-Pacific and North America and employs approximately 850 staff members worldwide.
Clients include individuals, private banks, third-party distributors, insurance companies, pension funds, government bodies and corporate entities. As a pure investment manager Henderson offers investments across equities, fixed income and multi-assets as well as alternative products, such as private equity, property and hedge funds.
About TIAA Henderson Real Estate
TIAA Henderson Real Estate (TH Real Estate) is an established investment management company with specialisation in real estate equity and debt investing worldwide. As one of the largest real estate managers in the world, TH Real Estate has the scale, capital resources and knowledge to provide creative and effective real estate investment solutions for clients. With a focus on the retail, office, logistics, debt and multi-family sectors, TH Real Estate emphasises sustainable practices to protect assets and maximise their value.
Launched in April 2014, the company has a dedicated global presence with offices across Asia and Europe, managing c.£15bn of real estate assets across c.50 funds and mandates.
Together, the TIAA-CREF real estate and TH Real Estate platforms represent one of the largest real estate investment management enterprises in the world, with a combined total of c. $45 bn* in real estate assets under management.
The company is jointly owned by TIAA-CREF (60%) and Henderson Global Investors (40%) bringing it a combined track record of over 90 years in global real estate. Its products are managed by specialist teams, which apply their own experience to the management and style of their portfolios. Each team is supported by an experienced senior management team and integrated investment platform, including finance, debt and currency management, performance analytics, client service, fund and transaction structuring, development, sustainability and research.
Important information: For professional use only. Past performance is no guarantee of future results. The value of an investment and the income from it can fall as well as rise and investors may not get back the amount originally invested.
Old Mutual Global Investors (OMGI) has no house market view and opinions expressed are the views of individual fund manager(s) as at the time of writing. These views may no longer be current and may have already been acted upon. Any underlying research or analysis has been procured by OMGI for its own purposes and may have been acted on by OMGI or an associate for its or their own purposes. OMGI is the appointed investment adviser for Old Mutual Fund Manager’s in-house OEIC funds. Old Mutual Global Investors is the trading name of Old Mutual Global Investors (UK) Limited. Old Mutual Fund Managers Limited, 2 Lambeth Hill, London EC4V 4AD. Authorised and regulated by the Financial Conduct Authority. A member of the IMA. Old Mutual Global Investors (UK) Limited, 2 Lambeth Hill, London EC4P 4WR. Authorised and regulated by the Financial Conduct Authority. Telephone calls may be recorded for security purposes and to improve customer service. OMGI 10/14/0143
This press release is solely for the use of members of the media and should not be relied upon by personal investors, financial advisers or institutional investors.
Issued in the UK by Henderson Global Investors. Henderson Global Investors is the name under which Henderson Global Investors Limited (reg. no. 906355), Henderson Fund Management Limited (reg. no. 2607112), Henderson Investment Funds Limited (reg. no. 2678531), Henderson Investment Management Limited (reg. no. 1795354), Henderson Alternative Investment Advisor Limited (reg. no. 962757), Henderson Equity Partners Limited (reg. no.2606646), Gartmore Investment Limited (reg. no. 1508030), (each incorporated and registered in England and Wales with registered office at 201 Bishopsgate, London EC2M 3AE) are authorised and regulated by the Financial Conduct Authority to provide investment products and services. Henderson Secretarial Services Limited (incorporated and registered in England and Wales, registered no. 1471624, registered office 201 Bishopsgate, London EC2M 3AE) is the name under which company secretarial services are provided. All these companies are wholly owned subsidiaries of Henderson Group plc (incorporated and registered in Jersey, registered no. 101484, registered office 47 Esplanade, St Helier, Jersey JE1 0BD). Telephone calls may be recorded and monitored. Ref: 34CC