This week, Multi Corporation completed a management buyout ushering in a new era after a colourful history.
With assets under management of €5bn spread over 80 properties in 13 countries and over 400 mnl customers in its retail centres, it is still a significant player in European property.
The likes of the Winkelcentrum Hasselo in the Netherlands, Roemerpassage in Mainz, Germany, Marmara Forum in Istanbul, Ferio Konin in Poland, and Espacio Leon in Spain to name just a few assets demonstrate the geographical breadth of its portfolio.
Significantly, as of now this company, which employs more than 500 people, is officially under new owner management.
Co-CEOs Elmar Schoonbrood and Steven Poelman have led a management buyout from The Blackstone Group, which seems to have inspired all involved.
Said Schoonbrood: ‘Multi is unique in that we can offer clients a reliable and independent operating partner across the entire European retail sector. Our services range from sourcing, underwriting and managing, to developing and redeveloping retail as well as other asset classes. I am looking forward to working alongside Steven to deliver our new vision for the business.’
Poelman added: ‘We are excited about this transaction and the potential to continue evolving the business.’ He said that as an asset manager with direct relationships with the 6,000 tenants it had a ‘competitive edge.'
‘Our in-house architectural design and technical teams allow us to turn around complex retail centres as well as convert retail and office properties to residential use.’
Adam Shah, head of real estate asset management Europe at Blackstone added: 'Multi is a unique, pan-European business which has an impressive history, strong foundations, an extensive customer base and an excellent management team. As the company embarks on this new chapter, we look forward to continuing our relationship with Multi and are excited to witness its future success.’
HISTORY
Multi has its roots in 1982. Hans van Veggel founded it as Multi Development Corporation. Over the course of three decades, it grew into an award-winning supplier of malls. They often served as the catalyst to revitalise a city or even a region, noted van Veggel in a recent interview with PropertyEU founder, Wabe van Enk.
The awards flowed from the ICSC, ULI, Mapic and Mipim. But things headed south due to the amount of debt taken on. In 2005, one of Morgan Stanley Real Estate funds acquired a 75% stake in the company.
Van Veggel continued as chairman as a new CEO entered the fray. Having been with Morgan Stanley Real Estate for 11 years including as head of investing in German and the Netherlands, Glenn Aaronson came in to manage the business day-to-day in June 2007. He had already been one of Morgan Stanley’s people on the Multi board.
Even though the Global Financial Crisis was just around the corner, the noises were bullish. Van Veggel said at the time: ‘Multi has an enormous potential as it is positioned to take advantage both of general market forces favourable to retail development with an emphasis on specific areas within the greater Europe of dynamic consumer growth.'
But the GFC led to forced-decisions for Morgan Stanley Real Estate with its overleveraged positions.
Blackstone smelt blood, and in a forced takeover in 2013 gained control of the Dutch company’s €900mln of debt at a steep discount. The €900mln loan had been granted by a consortium led by merchant bank NIBC, which like Multi also came to be owned by Blackstone.
The acquisition by Blackstone was completed in 2013 under the leadership of Ken Caplan, former head of European Real Estate, who is now global co-head.
In his interview with PropertyEU, van Veggel shows shades of resentment about what followed. He says the hostile takeover led to a complete change within the company. Architecture, which had been an important facet, got regarded as a ‘hobby’ while ‘spreadsheets dictated what managers had to do’ instead of the other way round.
UNDER BLACKSTONE CONTROL
Blackstone’s business plan was to turn the company into an asset manager, with design and development no longer being part of the business, according to van Veggel.
It was the moment that he thought: ‘To hell with it all.’ Devastated by what he saw as the demise of his company, he disappeared to Portugal, leaving his son, Bas, to settle family interests in London. Bas van Veggel recalls his father being so desolate he could not even muster up the energy to negotiate his exit.
These days, he is still residing in Portugal putting his strengths to effect, ‘diagnosing’ places and coming up with new ideas much like his father did, who was trained as a doctor.
Bas van Veggel now concentrates on the family’s Timeless Investments interests, such as Dutch platform COD and B.Amsterdam, often working with local developers.
Other interests relate to property development and investment beyond retail, such as developer ZOM Living, property manager ZRS and asset manager, Stonebridge Investments.
The Van Veggel family look on as the new MBO leaders put into effect the next plan for Multi.
Nine years since Blackstone took over, it is firmly in the hands of Schoonbrood and Poelman.
Schoonbrood first joined the board in June 2021 and then full time in March 2022 becoming co-CEO. Previously, he was MD at Blackstone in London where he managed the firm’s European and Turkish assets.
Poelman worked at Multi from 2002 until 2006 during which time he set up Multi’s Turkey business. He then moved to Redevco, along the way developing a portfolio of shopping centres later sold to Blackstone. He rejoined Multi as MD in 2013 and to the board in 2016.
They are ready to now write the next chapter.
*Subscribers can read the interview with Hans van Veggel and his two sons, Bas and Tim, in the March edition of PropertyEU.
