Australia's Macquarie re-boots in Europe with takeover of Munich's GLL

Nicholas Moore, managing director and chief executive officer of Macquarie Group © TORSTEN BLACKWOOD / AFP

Macquarie Infrastructure and Real Assets, a division of Australia's Macquarie Group, is boosting its presence in Europe, announcing on Tuesday the acquisition of Munich-based real estate fund manager GLL Real Estate Partners. No financial details were given.

GLL manages 100 property investments and development projects in office, retail and industrial real estate. Some 44% of the portfolio is located in Europe, 51% in the US and 5% in Latin America. Following the transaction, the two firms will together manage €10.6bn of prioperty assets globally on behalf of investors, MIRA said in a release. "GLL has €7bn of assets under management and a team of over 130 experienced real estate professionals based in Europe, the Americas and South Korea. GLL’s deep expertise and established investor base will provide MIRA with significantly enhanced capabilities and immediate presence and scale in the real estate sector."

Formed in 2000 by three executives of HypoVereinsbank in a joint venture with Australia's Lend Lease and Italian insurance giant Generali, GLL was, prior to the MIRA deal, independently owned by management - founding partners Rainer Göebel and Gerd Kremer, along with Managing Director Dana Gibson. MIRA said these executives, "will continue to lead the business and ensure continuity and stability for staff, clients and business partners."

The Macquarie group was an active real estate investor across Europe in the early part of last decade but largely withdrew after the global financial crisis and has since restricted activity mainly to infrastrucure investment in western and eastern Europe. "As the world leader in infrastructure investment for over 20 years, MIRA has been building its presence across the real asset investment spectrum, including real estate, energy and agriculture," it said.

Martin Stanley, MIRA global head, commented: "This partnership is a significant step in MIRA’s growth and diversification across the real assets sector and will result in a material expansion of our global real estate footprint. MIRA’s global platform and strong track record in fundraising combined with the real estate expertise of the GLL team positions us well to expand our offering to our respective client bases in the coming years."

Göebel said the two firms spent considerable time confirming their compatibility. "I am convinced that bringing these two entities together will result in the whole being greater than the sum of the parts," he said. "We complement each other, by bringing together two networks to the benefit of our respective investors and business partners, providing a truly global platform."

Added Kremer: "GLL has built an international portfolio and network to the benefit of its strong institutional investor base. Teaming up with a first-in-class international institution continues consolidates and strengthens GLL’s long-held strategy."

The transaction is subject to regulatory and merger approvals, expected in second quarter 2018.

Business Immo