MVGM and JLL agree for MVGM to acquire JLL’s continental European property management business and to enter into alliance partnership
Transaction creates a top 5 European player with a presence in 10 countries
Dutch-based property manager MVGM and international real estate professional services firm JLL announce today that they have reached an agreement for MVGM to acquire JLL’s Continental European property management business, including some specialist shopping centre management teams and capabilities, creating a pure-play property manager with a pan-European footprint.
At the same time, both companies have entered into an alliance partnership, allowing them to develop and service a mutual client base in future.
Highlights of the deal include:
- MVGM becomes a top 5 European player (no. 1 in the Netherlands and top tier in Germany) in the evolving property management market
- Gives MVGM a foothold in eight additional countries with 540 employees in: Spain, Portugal, Belgium, Luxembourg, Poland, Czech Republic, Romania and Slovakia and expanded teams in the Netherlands and Germany
- Adds more than 12 million m2 to MVGM’s current portfolio of 6.4 million m2 in the Netherlands and Germany
- Gives company access to additional high-profile clients that include leading global real estate investors
- Enables JLL to continue to provide clients with access to property management and shopping centre management services via a trusted alliance partner with specialist expertise and established operations, and via the teams that they’re used to dealing with
Menno van der Horst, Member of the Board MVGM: “This transaction is a leap forward in our growth ambition and a perfect strategic fit for MVGM. We’re creating not only a European leader in property management, but also a focused and specialized partner with unparalleled expertise. Our clients operating internationally will benefit from a partner that combines international scope with the local knowledge and digital expertise, including in data collection and visualisation, that we bring. And at the same time we can offer our employees – current and future – the opportunity to be part of a dynamic organisation.”
Guy Grainger, EMEA CEO at JLL: “This sale to, and alliance partnership with, MVGM gives our specialist property management teams across Continental Europe opportunities to grow and thrive in future. The alliance partnership with MVGM ensures that clients continue to receive best-in-class property management services and enables us to continue to provide access to a range of real estate services across Continental Europe, including property management through our trusted partner. We look forward to working together with MVGM as we develop and service a mutual client base.”
Acceleration of MVGM’s growth strategy
The acquisition of JLL’s continental European property management business is a milestone in the implementation of MVGM’s growth strategy. It is a perfect fit for the company and fully aligned with the optimisation MVGM is pursuing through further digitalisation and the acceleration of innovation, resulting in an unrivalled quality of service.
MVGM’s ambition is to become a leading European property management player.
MVGM has grown rapidly over the past five years through acquisitions. The company’s successful track record in bolt-on acquisitions includes Germany’s PropertyFirst in 2019, the merger with Verwey in 2018 and the Dutch acquisition of Actys in 2016.
Indicative process and timetable
MVGM and JLL are committed to ensuring clients experience a smooth transfer between the JLL and MVGM organisations. Clients will continue to be serviced by the same property managers they work with currently. Clients can rely on having the same systems and services and familiar processes, with the added benefit in future of a partner that is a highly specialized property management organisation with profound expertise.
MVGM will integrate the new activities into its current business in phases, closing the transaction for the legal entity in each country separately and working closely with JLL. The first country is expected to close in September 2019 and the last in December 2019 and after MVGM has secured all customary regulatory approvals and clearances.
Between signing and closing, MVGM’s priority is to establish a solid IT infrastructure and offices. The integration process will be meticulously planned and carried out in close collaboration with JLL and other stakeholders.
The transaction is expected to close by the end of 2019.
Financial details of the transaction will not be disclosed.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of over 91,000 as of March 31, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.