BlackRock, the New York-listed asset management firm, said
today it has entered a definitive agreement to buy MGPA, an
independently-managed private equity real estate investment advisory company in
Asia-Pacific and Europe, overseeing $12
billion of assets at the end of March this year.

The acquisition will give, on a pro-forma basis, BlackRock
assets under management in global real estate of $25 billion, based on figures
set at the end of March. The deal also gives it “substantial teams in the world’s
top-six markets, which represent 75 per cent of the commercial real estate
investable universe,” the firm said in a statement.

“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,”
said Jack Chandler, global head of real estate for BlackRock.

The firm said that MGPA’s offerings complement BlackRock’s
existing real estate investment solutions, “with virtually no overlap of people
or products”.

MGPA has a presence in 13 offices in Asia-Pacific and Europe.

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.

MGPA was advised by Berkshire Capital Securities.

“The addition of MGPA to BlackRock is an important step in
the evolution of our Asia-based investment capabilities and is aligned with the
growth of our Asia-Pacific franchise,” Mark McCombe, BlackRock’s chairman,
Asia-Pacific, said.

”Global real estate plays an increasingly important role in the
investment strategy of our Asian clients. Similarly the strong economic growth
in the region means global investors are looking for greater exposure to Asian
real estate. The acquisition of MGPA and its experienced investment team will
respond to this demand,” he said.