Rockefeller Group International has bought a 75%-stake in fund manager Europa Capital.
The deal gives Rockefeller, which is owned by Mitsubishi Estate Co, a foothold in the European property market while it gives Europa a well-known backer and future equity provider.
The two parties had been in talks since the spring. No financial details were disclosed. Europa declined to comment on a rumoured price of $35m-$45m (€25m-€32m) for the 75%-stake in the business.
“The alliance with Europa is a significant step in the realisation of a RGI/MEC global real estate investment management platform,” said Kevin Hackett, president and chief executive of Rockefeller.
“We are impressed by the quality of the Europa management and appreciate the confidence with which they are regarded by their investors.”
Manhattan origins
RGI was initially established in 1928 by John D Rockefeller Jr to develop the Rockefeller Center complex in Midtown Manhattan. RGI is an owner, developer and institutional manager of large urban and suburban office buildings, corporate head quarters, mixed-use complexes and industrial distribution assets. Together with Europa Capital, it will create a $20bn fund management group.
The five principals of Europa, which include Noel Manns and Charles Graham, will remain in charge of the business and retain a minority stake.
Europa was originally set up by Sir John Beckwith but owned completely by its partners.
Europa principal Noel Manns said: “RGI and MEC are two global real estate investors with strong reputations and networks and this [deal] will help us to expand our business and engage with new investors.”
Manns added that RGI would also invest in new funds to be launched by Europa Capital, which has raised six real estate funds and invested more than €6bn in 17 European countries since 1995.
“Limited partners want to see co-investments from the manager,” said Manns. “They want to see more of it rather than less.”
In 2008, Europa Capital closed two new funds, Europa Fund III and Europa Emerging Europe. The latter invests in eastern Europe and was launched at MIPIM in 2007.
The fund manager has not invested much because central and eastern European markets froze as a result of the financial crisis.
Europa recently closed one of its most opportunistic deals by buying a 40,000 m2 plot of land in Brussels. Europa is currently looking at buying the Mall of Sofia (see page 4).
The two funds combined give Europa Capital €895m of equity to invest.
