Alternative asset management company The RMR Group is buying US multifamily real estate company Carroll for up to $100m (€116.7m).
Nasdaq-listed RMR said it has agreed to acquire the equity interests in MPC Partnership Holdings, trading as Carroll, for $80m and will pay up to an additional $20m based on certain performance targets being met.
Founded in 2004 and headquartered in Atlanta, Georgia, Carroll provides asset and property management services to 81 multifamily properties with more than 28,000 units, primarily located in the Sunbelt markets of the US.
RMR, which is based in Newton, Massachusetts was founded in 1986 with a focus on commercial real estate and related businesses and manages over $37bn in assets under management.
The acquisition expands the RMR platform by providing multifamily expertise across the Sunbelt markets. It also further advances RMR’s strategic focus on growing its private-capital business, adding approximately $7bn in assets under management and over 20 institutional partner relationships.
Adam Portnoy, president & CEO of The RMR Group, said this transaction will further diversify and expand the reach of RMR, “augmenting RMR’s already considerable scale with differentiated operational expertise in a favoured commercial real estate sector”.
Portnoy added: “Importantly, the Carroll platform is uniquely positioned to continue benefiting from favourable demographic tailwinds in high-growth Sunbelt markets.
“Additionally, this acquisition will advance RMR’s private capital-growth strategy with high-quality global institutional investors and drive continued growth across the combined platform with the potential to make in excess of $3bn of additional multifamily investments.”
Patrick Carroll, founder & CEO of Carroll, said: “Carroll’s long track record of success and expertise in the multifamily sector will perfectly complement RMR’s diverse real estate investment management platform.”
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