The acquisition of independently-managed MGPA, which BlackRock describes as a “highly complementary businesses”, will create a US$25 billion global real estate investment manager, BlackRock stated.
BlackRock said the move will add extensive Asian and European capabilities to its US and UK real estate investment presence. MGPA has an on-the-ground presence in 13 offices in Asia Pacific and Europe, BlackRock stated.
Global head of real estate for BlackRock Jack Chandler said the firm is looking to enhance its local offerings and build on its real estate experience.
“[The agreement] 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,” he said.
The move is an important step in the evolution of BlackRock’s Asia-based investment capabilities and is aligned with the growth of its Asia Pacific franchise, said Mark McCombe, BlackRock’s chairman, Asia Pacific.
“As demand for more diverse investment strategies increases, we are confident the addition of MGPA's leading real estate expertise will further enhance the solutions we can provide to our clients," he said.
MGPA’s offerings bring virtually no overlap of BlackRock’s existing people or products, the firm stated.
The transaction is expected to close in the third quarter of 2013, subject to customary regulatory approvals and closing conditions. The financial impact of the transaction is not material to BlackRock earnings per share. Terms were not disclosed.
