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BlackRock extends real estate reach with MGPA acquisition

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BlackRock claims to have become a “truly global real estate investment manager” after agreeing to acquire a property investment firm focused on Asia-Pacific and Europe.

The asset manager has entered into a deal to buy independently-managed private equity real estate investment advisory company MGPA, which has assets under management of $12bn.

BlackRock says the acquisition will “significantly” extend its real estate investment capabilities, bringing its real estate AUM to around $25bn.

BlackRock global head of real estate Jack Chandler says: “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.

“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 asset manager, which has a strong presence in the US and UK real estate markets, says there is “virtually no overlap” between its own property teams and products and those that will be acquired through MGPA.

MGPA executive chairman Jim Quille says: “In BlackRock we have found an excellent asset manager to partner with who has a deep fiduciary culture, industry-leading risk management capabilities.”

The deal is expected to complete in the third quarter of 2013, subject to regulatory approvals and closing conditions.

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