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Proposed transaction to merge the 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 £437m* 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 £2.3bn*. Based on existing figures, following the merger, the fund’s assets under management will increase to over £2.7bn*, 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, commented: “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, Co-Fund Manager, said: “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.”

Mike Sales, MD, Europe at TH Real Estate, added: “The Fund will continue to benefit from expertise across the core sectors including retail, offices and industrial. Our dedicated platform currently manages over £8bn property assets across the UK, supported by an integrated team of best in class professionals, comprising performance analytics, fund and transaction structuring, development, sustainability and research.”

* All data as of 30 September 2014, unless otherwise stated

Disclaimer
Issued by Henderson Real Estate Asset Management Limited, 201 Bishopsgate, EC2M 3BN. Authorised and regulated by the UK's Financial Conduct Authority (FCA). TH Real Estate is a name under which Henderson Real Estate Asset Management Limited provides investment products and services. The value of Investments and any income will fluctuate (this may be partly be the result of exchange rate fluctuation) and Investors may not get back the full amount invested. Where opinions have been expressed, they are based on current market conditions and are subject to change without notice.

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