Macquarie sells out of MGPA
Although no details were released, it is understood the terms were about $150 million to $200 million, of which Macquarie's 56 per cent stake could be worth as much as half.
MGPA was formed in early 2004 when current executive chairman Jim Quille led a management buyout of Lend Lease's Global Property Investment Fund unit. Macquarie bought a stake later that year.
The newly combined operations will create a global property funds manager and investor worth about $25 billion. It will have an exposure to the world's top six markets, which represent 75 per cent of the commercial real estate investable universe.
Mr Quille said that MGPA engaged Berkshire Capital Securities LLC in November last year when it became obvious that in order to expand MGPA it needed a partner.
He will stay on as a consultant until the end of next year to oversee the transition of the takeover by BlackRock.
"We believe there has been a sea change in the global real estate sector with more capital inflow tipped for the coming year," Mr Quille said.
"As a result, we felt it was necessary to get a partner that has a focus on the US and European markets.
"BlackRock and MGPA are very similar in size and culture, with each having about $14 billion of funds under management and close to 200 staff. We don't overlap as MGPA is pan-Asia and pan-European."
After the merger, MGPA will roll out its Asia Fund 4 and also run the Asian Special Fund for its German institutional clients.
Mr Quille said while institutions were comfortable owning buildings in their own countries, when investing overseas they mostly prefer investing in a fund.
The global head of real estate for BlackRock, Jack Chandler, said: "The 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."
Frequently Asked Questions about this Article…
Macquarie Bank sold out of its stake in MGPA after US firm BlackRock took over the real estate advisory business. The deal combines MGPA with BlackRock’s real estate operations to create a larger global property funds manager.
The reported terms were understood to be about $150 million to $200 million. With Macquarie holding a 56% stake, the article says that stake could be worth roughly half of that total—around $75 million to $100 million in simple terms.
The newly combined operations are said to create a global property funds manager and investor worth about $25 billion, with exposure to the world’s top six markets that represent roughly 75% of the commercial real estate investable universe.
MGPA was formed in early 2004 when executive chairman Jim Quille led a management buyout of Lend Lease’s Global Property Investment Fund unit. Macquarie bought a stake later that same year.
MGPA engaged Berkshire Capital Securities LLC in November (of the year before the deal) to help find a partner and manage the sale process.
Jim Quille, MGPA’s executive chairman, will stay on as a consultant until the end of next year to oversee the transition following BlackRock’s takeover.
After the merger MGPA plans to roll out its Asia Fund 4 and run an Asian Special Fund for its German institutional clients, expanding its fund offerings in Asia under the BlackRock partnership.
MGPA said it needed a partner to expand, particularly with more capital expected to flow into global real estate and a focus on US and European markets. BlackRock described the agreement as advancing its growth strategy in Asia‑Pacific and Europe to enhance local offerings. For everyday investors, the deal signals larger firms building broader global fund platforms and more cross‑border property fund options, especially in Asia and Europe.
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