Deals

Rockefeller Group to take over TA Realty

Rockefeller, which in 2010 chose Europa Capital Partners to be its European platform, has now acquired a majority interest in Boston-based TA to become its primary US business.

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The Rockefeller Group, a global property owner, developer and investment manager ultimately owned by Japan’s Mitsubishi Estate, has struck an agreement to buy TA Realty to become its primary US real estate investment management platform.

Today the group said it had entered into an agreement to acquire a majority interest in the Boston-based firm that was established in 1982 and has acquired, invested and managed more than $22 billion of real estate on behalf of hundreds of US and non-US institutional investors.

The corporate deal is significant in the higher-returning real estate fund management arena since TA Realty is one of the largest managers in the world that currently has four active value-added commingled funds and multiple separate accounts comprising more than 77.2 million square feet of commercial real estate and 14,600 residential units in 35 US markets.

It was ranked 16th largest private equity real estate firm in the world in the annual PERE 50 published in May this year having climbed four spots from 2013 off the back of raising $3 billion of fresh equity in the last five years similar to Fortress Investment Group. In 2012, it raised $1.562 billion for Fund X.

Assuming the deal consummates, the acquisition of TA Realty will establish a global investment management platform totaling $32 billion in assets under management on a worldwide basis under Mitsubishi Estate Co. Ltd, otherwise known as Mitsubishi Estate.

It follows on from a 2010 transaction when The Rockefeller Group became a strategic investor alongside management in London-based Europa Capital by acquiring a majority stake. Since then, Europa has raised its first funds since new ownership and has broadened its activities with the establishment of an income strategies business.

Explaining the move, Rockefeller said Europa and TA Realty would be operated as affiliates within The Rockefeller Group with TA Realty operating within North America and European investment management business being conducted by Europa.

Rockefeller is led by Atushi Nakajima, president and chief executive officer.