In an announcement, BlackRock Inc said that it would be purchasing MGPA, the real estate investment firm in order to expand its real estate portfolio worldwide.
With the purchase, BlackRock would also be absorbing its current portfolio under management estimated to be at US$12 billion. This would result in the buyout firm doubling the amount of money it had just invested in the real estate company.
MGPA has independent offices that operate worldwide and undertakes the management of real estate funds as well as other accounts for its institutional investors. The latest move would also increase the buyout firm's presence in the Asia Pacific as well as in Europe. About 60% of MGPA's assets are located in Asia and the Pacific while the rest is located in Europe.
According to Mark McComber, the Asia-Pacific chairman for BlackRock, "When you think about investment styles, there's no doubt we are seeing increasingly large institutions and pension funds and insurance companies... heading into alternative (investments) and longer dated assets." He added that the expansion of the real estate portfolio of the firm would satisfy investor demand for long term investments in its portfolio.
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