Old Mutual Global Investors is merging its property fund into the Henderson UK Property Fund managed by Ainslie McLennan and Marcus Langlands Pearse, subject to regulatory and client approval.

Old Mutual Global Investors is merging its property fund into the Henderson UK Property Fund managed by Ainslie McLennan and Marcus Langlands Pearse, subject to regulatory and client approval.

The merger is set to complete in January 2015 and will increase the Henderson fund’s assets under management to over £2.7 billion ($4.3 billion), with the number of properties in the portfolio increasing from 84 to 108 and the number of tenants from 407 to 577, Old Mutual said in a statement.

The £437 million Old Mutual Property Fund, currently run by CBRE Global Investors, was launched in December 2005 and has been managed by the same investment team since inception.

The merged fund will continue to be managed by TIAA Henderson Real Estate (TH Real Estate), $16 billion specialist real estate investment manager, which was created earlier this year following a merger between Henderson Global Investors’ real estate business and TIAA-CREF.

“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,” said Julian Ide, chief executive of Old Mutual Global Investors.

“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,” he added.