BlackRock Buys MGPA, Creating $25 Billion Fund

BlackRock Inc. headquarters in New York City.
Adam Jeffery | CNBC
BlackRock Inc. headquarters in New York City.

BlackRock, the $4 trillion U.S. fund manager, has bought private- equity real estate fund MGPA in a deal that boosts its presence in Asia and continental Europe.

The combined business will have $25 billion of property under management and the transaction is due to complete later this year. No price was announced.

The real estate fund management industry has been under pressure since the financial crash and larger funds find it easier to raise money, attract high-quality staff and benefit from the efficiencies of scale to deliver the high returns demanded by investors.