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Impact Investing

IPE special report May 2018

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BlackRock to acquire private equity property firm MGPA

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  • BlackRock to acquire private equity property firm MGPA

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GLOBAL – BlackRock is buying private equity property company MGPA in a move that will swell the US investment manager's global real estate assets to around $25bn (€19bn).

It said it entered into a firm agreement to acquire MGPA – an independently managed private equity real estate investment advisory in Asia-Pacific and Europe.

Jack Chandler, BlackRock's global head of real estate, said: "[This] 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."

The deal would add to BlackRock's strong US and UK property investment business to make it a "truly global" real estate investment manager, with pro forma assets under management of around $25bn as of the end of March, it said.

It would also give BlackRock large investment teams in the world's top six markets, which represent 75% of the commercial property investable universe.

BlackRock said MGPA's offerings complemented its own, with almost no overlap of people or products.

The combined platform will also make it possible to speed up MGPA's business growth by using BlackRock's distribution channels for institutional and retail clients, it said.

Jim Quille, executive chairman at MGPA, said his firm was pleased to have found an asset manager partner with a "deep fiduciary culture [and] industry-leading risk management capabilities".

MGPA manages real estate funds, co-investments and separate-account mandates for institutional investors and has products across the risk/return spectrum, including development.

At the end of March, it had $12bn in assets under management.

The deal is expected to complete in the third quarter, subject to regulatory approval and closing conditions.

BlackRock did not reveal the price or other terms of the deal.

Berkshire Capital Securities advised MGPA on its sale.

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