BlackRock acquires MGPA to create global real estate investment business
07 October 2013
By Asia Asset Management
BlackRock Inc has completed the acquisition of MGPA, an independently-managed private equity real estate investment advisory company in Asia-Pacific and Europe, creating a combined US$23.5 billion global real estate investment platform (as at end June 2013) serving a diverse client base of approximately 700 investors.
Bringing together the expertise of both firms significantly extends BlackRock’s real estate debt and equity investment capabilities and creates a truly global real estate investment manager across Asia-Pacific, Europe and the US.
The combined platform of over 400 on-the-ground real estate professionals, in 18 offices across 13 countries will operate under the BlackRock name. The enlarged business will offer investors access to the world’s top six markets, which represent 75% of the investable commercial real estate universe. Following the acquisition, BlackRock now manages a diverse suite of real estate funds, including real estate equity and debt, REIT securities; open-ended and close-ended funds; and separate account mandates designed to meet client-specific goals and investment objectives.
Jack Chandler, BlackRock’s global head of real estate, said: “This transaction shows our commitment to offer investors access to the attractive markets worldwide. The combined business will house some of the most talented and experienced real estate investment professionals and attractive funds in the industry, and we are extremely well-positioned to help clients meet their objectives and liabilities in a low yield and volatile world.”
Mark McCombe, BlackRock’s chairman, Asia Pacific, said: “We are committed to building out our regional alternative investment capabilities to meet the growing demand from our clients for real estate expertise. Bringing on board the MGPA team with such a real estate expertise is an important milestone as we continue to broaden our product set and accelerate our growth in Asia Pacific.”
MGPA’s offerings complement BlackRock’s existing real estate investment solutions, with virtually no overlap of products. The move also creates the potential to accelerate growth of the combined firm by pairing MGPA’s business with BlackRock’s distribution capabilities for institutional and retail clients.
Simon Treacy, global chief investment officer for BlackRock Real Estate and former group CEO for MGPA, commented: “Combining with BlackRock will provide many benefits for our clients and staff as we are joining a firm with a deep fiduciary culture, leading risk management capabilities, and the same commitment we have to delivering superior investment performance. Our combined investment teams and staff provide on-the-ground market coverage that will allow us to expand our activities across the real estate spectrum at a time when allocations to property as both a core allocation and an alternative investment are growing.”
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