State of Michigan Retirement System (SMRS) has sold US property group Simpson Property to Domain Capital for an undisclosed sum.
Simpson Property is a fully integrated real estate firm providing services in commercial and multifamily property management, development and construction.
The acquisition transitions Domain Capital from its long-standing role as an advisor to the owner of Simpson Property. The deal builds on a relationship spanning more than three decades, during which Domain Capital served as an investment adviser overseeing operations and investment strategy on behalf of SMRS.
Domain Capital said it intends to work alongside Simpson Property’s executive team to expand institutional investment offerings, including new fund vehicles and separately managed accounts for institutional investors.
Patrick Leardo, CEO of Domain Capital, said: “We are incredibly excited to formalise what has already been a deeply integrated and successful partnership. “We are grateful for the trust The State of Michigan Retirement System has placed in Domain over many years and appreciative of the collaboration with Simpson’s leadership team.
“This transaction reflects our shared confidence in the platform and its long-term growth trajectory.”
Frank Rooney Jr, Simpson Property CEO, said: “We are thrilled to be working even more closely with Domain as we enter this next chapter of growth. Its long-standing involvement with our platform provides continuity and alignment, and we look forward to expanding our investment capabilities while continuing to deliver exceptional service to our residents and institutional investors.”
In 2018, SMRS took full control of the Simpson Housing portfolio by acquiring the 50% stake it did not already own from the Alaska Permanent Fund Corporation (APFC).
APFC had originally acquired its 50% interest in the residential developer and manager in 2006. SMRS, which has held an interest in Simpson Housing since 1995, paid $1.45bn (€1.24bn) for the remaining stake to become the sole owner of one of the largest privately owned apartment managers in the US.
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