Large Platform Events | Issue 24.3

 

Summary of Transaction Headlines

CNBC | “BlackRock Buys Infrastructure Investor Global Infrastructure Partners for $12 Billion”

BlackRock, the world’s biggest asset manager, announced it is buying Global Infrastructure Partners for about $12 Billion in cash and stock. The acquisition is part of the firm’s increased focus on infrastructure, which CEO Larry Fink said is “one of the most exciting long-term investment opportunities.” As part of the deal, GIP’s management team will lead a combined infrastructure private markets investment platform at BlackRock. The deal is expected to close in the third quarter of this year.

Reuters | “UK’s LondonMetric to Buy LXI REIT in $2.4 Billion Deal”

British landlord LondonMetric Property (LMPL.L) will acquire London-based real estate investment trust (REIT) in a deal valued at 1.9 Billion Pounds ($2.43 Billion). Under the terms of the deal, each LXI shareholder will get 0.55 new LondonMetric shares for every share held. This represents a premium of about 9% to LXI’s closing price before the offer period began in December. LondonMetric, a REIT, primarily owns logistic platforms and a grocery-led long-income portfolio, while LXI invests in healthcare, budget hotels, theme parks, food stores, industrial, pubs, and education sectors.

IPE Real Assets | “Waterton Raises $1.53 Billion for New US Apartment Fund”

Waterton has closed on commitments totaling $1.53 Billion (€1.4 Billion) for its Waterton Residential Property Venture XV fund, according to an SEC filing in December 2023. Waterton declined to comment. It means that Waterton has a further $460 Million to raise to reach its $2 Billion target for the value-add US apartments fund. One of the more recent investors to join the fund was the Los Angeles City Employees Retirement System (LACERS), as reported by the pension fund in a board meeting document.

Bisnow | “Starwood Drops £800 Million ($1 Billion USD) on London Hotel Portfolio”

Private equity firm Starwood Capital has completed one of the largest UK real estate deals in the past 18 months, buying a portfolio of 10 London hotels for £800 Million, or just over $1 Billion. Starwood bought the portfolio, comprising 10 hotels with 2,053 rooms from Edwardian Group, the privately owned UK hotel owner and operator. The hotels operate under the four-star Radisson Blu Edwardian brand. The deal means that Starwood’s European hotel portfolio stretches to 47 hotels with 10,000 rooms. Starwood will look at opportunities to improve the London portfolio’s value, including rebranding the hotels.

Bisnow | “Avison Young Acquires Retail Platform from Madison Marquette”

Avison Young has acquired and is operating Madison Marquette’s retail property management, retail marketing, retail leasing, and specialty leasing lines across the U.S. This is the second purchase Avison Young has made from MM in the last 18 months. In 2022, Avison Young acquired Madison Marquette’s office and industrial property management, agency leasing, and project management services for an undisclosed sum. “By acquiring Madison Marquette’s full retail services, Avison Young is expanding its commitment to building a national retail platform to serve the needs of investor and occupier clients,” Avison Young U.S. President and Principal Harry Klaff said in a statement. The acquisition includes more than 6.1 Million Square Feet of leasing, property management, and specialty leasing assets throughout the nation.

Commercial Observer | “Brookfield Hands Over U.S. Office Property Management to CBRE”

Brookfield Properties is handing off its day-to-day property management to CBRE in the spring. Brookfield will continue to manage the cash flow and investment side of its properties, and it will keep an asset management team focused on making sure its investors get their returns. However, CBRE will handle the more run-of-the-mill management of a property that usually happens on-site, including accounting, procurement services, and building technology, according to both companies. Brookfield’s maintenance and operations staff will continue working the same jobs under the same supervisors in buildings across the country, but CBRE will become their employer when the partnership goes into effect on April 2.

IREI | “Indraneel Karlekar Joins Clarion Partners as Managing Director and Global Head of Research and Strategy”

Clarion Partners announced that Indraneel “Indy” Karlekar has joined its senior leadership team as a Managing Director and Global Head of Research and Strategy. He is responsible for overseeing all facets of investment research, including developing portfolio strategies, leveraging data analytics, and supporting capital raising and client service. Karlekar, who served in senior roles for ING Clarion Real Estate Securities from 2003 to 2011, rejoins Clarion after spending more than a decade with Principal Asset Management as Global Head of Research and Portfolio Strategies. He also spent time in similar research roles with AIG Global Real Estate and Cole Capital.

Pensions and Investments | “Partners Group Adds Global Co-Head of Real Estate”

Karim Habra was named as Global Co-Head of Real Estate at private markets firm Partners Group, effective in mid-March. Habra will be Co-Head alongside Mike Bryant, a Partner and currently Global Head of Real Estate. His addition to the firm reflects the firm’s commitment to further scaling its $17 Billion real estate business globally. Habra was Global Head of Strategic Partnerships and Head of Europe and Asia-Pacific at Ivanhoe Cambridge, the real estate investment unit of Canadian pension fund Caisse de Depot et Placement du Quebec, Montreal.

 PR Newswire | “Leading Manufactured Housing Real Estate Investment & Property Management Company Announces Key Leadership Changes”

Patrick O’Malley, Legacy Founder and CEO, announces significant changes in Legacy’s leadership team, signaling a new era of growth. Andrew J. Fells moves from Chief Operating Officer (COO) to President and will continue to lead the company with dedication and innovation, ensuring success in the ever-evolving real estate and property management environment. Legacy Communities is very pleased to announce Brad Valka as the new Chief Operating Officer.

Business Wire | “Axonic Capital Appoints Matthew Weinstein to Newly Created Co-CIO Role”

Axonic Capital, the New York-based securitized credit and commercial real estate asset manager with $4.3 Billion in assets under management, is pleased to announce that Matt Weinstein has been promoted to Co-Chief Investment Officer. In the newly created role, Matt will continue to work alongside Clay DeGiacinto, Founder and Co-Chief Investment Officer, and will oversee investment management, trading, asset allocation, and sector allocation across the firm’s investment strategies. Since Matt joined Axonic in 2012, Axonic Capital has seen significant growth in assets under management, fueled by Matt’s contribution to building out and scaling the firm’s commercial real estate investments.

PE Hub | “Ontario Teachers’ Appoints McLennan and Brown as CIOs”

The Ontario Teachers’ Pension Plan Board has appointed Stephen McLennan as Chief Investment Officer, Asset Allocation, and Gillian Brown as Chief Investment Officer, Public and Private Investments. Also, Jonathan Hausman has been named Chief Strategy Officer. All three appointments are effective immediately.

Financial Times | “Calstrs Investment Chief Christopher Ailman to Retire After 20 Years”

Calstrs, one of the biggest US pension plans, is searching for a new Chief Investment Officer after long-serving executive Christopher Ailman announced he was stepping down after two decades. Ailman, who has served as CIO of the California State Teachers’ Retirement System since 2000. He is a global leader and viewed as one of the top CIOs in the world.

Connect CRE | “Inland CEO Mitchell Sabshon to Retire, Keith Lampi Named Successor”

Inland Real Estate Investment Corporation announced that Mitchell Sabshon has decided to retire from his positions of President, CEO and as a Director of Inland Investments effective February 1, 2024. The company’s Board of Directors has appointed Keith Lampi as his successor. Sabshon will remain in his current roles at two of the publicly registered, non-listed real estate investment trusts sponsored by the firm.

IREI | “The Connor Group Promotes Brock Wright to CIO”

The Connor Group has announced the promotion of Brock Wright to Chief Investment Officer (CIO), effective immediately. Wright will continue to Head the firm’s DARS (Debt-Analytics-Refinances-Supplementals) and investor relations departments in this new role. He oversees all property acquisitions and dispositions, ensuring prospective transactions align with the firm’s strategy and meet its investment criteria. He also leads the finance team, which maintains data, analytics, and submarket-level knowledge about all locations where The Connor Group operates.

Business Wire | “Sixth Street Expands Real Estate Platform, Adding Marcos Alvarado as Partner”

Sixth Street, a leading global investment firm with over $75 Billion in assets under management, announced the expansion of its Sixth Street Real Estate platform with the addition of Marcos Alvarado as a Partner of the firm and Head of U.S. Real Estate. He will assume his new role on February 1st. Sixth Street Real Estate is a global investment platform focused on acquiring properties and providing financing solutions across the full range of real estate sectors, including residential, hospitality, office, industrial, and retail.