Macquarie sells last of MPGA stake
(23 May 2013 – Australia) Macquarie Bank has sold its last remaining stake in real estate advisory firm MGPA to United States company, BlackRock.
It is understood the terms were around A$150 million to A$200 million, of which Macquarie’s 56 percent stake could be worth as much as half.
In 2004, MGPA was formed when current Executive Chairman Jim Quille led a management buyout of Lend Lease’s Global Property Investment Fund unit, later in the year; Macquarie bought a stake in the firm.
The newly combined operations will create a global property funds manager and investor worth about A$25 billion.
It will have an exposure to the world's top six markets, which represent 75 percent of the commercial real estate investable universe.
Quille 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,'' 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 A$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.
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.''