BlackRock to acquire $12bn real estate firm MGPA

BlackRock has agreed to acquire private equity real estate adviser firm MGPA for an undisclosed sum.

MGPA is focused on real estate funds management, co-investments and separate account mandates for institutional investors, offering products across the risk/return spectrum, including development, and had $12bn in AUM as of 31 March 2013.

The firm has 13 offices in Asia Pacific and Europe, and will significantly extend BlackRock’s real estate investment capabilities in these regions, the group said.

BlackRock added there is “virtually no” overlap of people or products within the two businesses.

The combined platform will also help grow MGPA’s business by leveraging BlackRock’s distribution network for institutional and retail clients.

The planned deal will swell BlackRock’s real estate AUM to $25bn, and give it investment teams in the world’s top six markets, which represent 75% of the commercial real estate investable universe, the firm said.

“Today’s agreement advances BlackRock’s growth strategy in Asia Pacific and Europe, where we are seeking to enhance our local offerings and build on the firm’s real estate experience,” said Jack Chandler, global head of real estate for BlackRock.

“It further strengthens our ability to offer clients an unrivaled set of solutions to the challenges of a low-return, high volatility environment, including access to MGPA’s top-performing investment teams and exceptional capabilities in key markets.”

The transaction is expected to close in the third quarter of 2013, subject to  regulatory approval.


This article was first published on InvestmentWeek

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