Hermes, the global investment manager, has announced it is acquiring MEPC Limited, the UK commercial real estate developer and asset manager, from the BT Pension Scheme.
This acquisition greatly enhances Hermes Real Estate’s proposition by adding specialist asset and development management expertise to its existing capabilities.
In particular, it supports Hermes’ core strategy of creating urban regeneration schemes, which not only deliver attractive financial returns, but will have a positive impact on the environment and communities in which they are located.
Chris Taylor, CEO of Hermes Real Estate, comments, “This acquisition of MEPC provides Hermes with a conduit for best in class development management expertise, supporting our ambition to be the leading provider of great places, which deliver positive outcomes for both society and the environment. There are many synergies between the two brands and an already long lasting and successful relationship, which can now be built upon further.”
James Dipple, Chief Executive of MEPC, said, “This is an exciting transaction for MEPC, allowing us to combine our long track record of success with a leading real estate investment manager. Our strategic ambitions for the future are fully aligned with those of Hermes and, therefore, a strong basis for the growth of MEPC.”
In the next few years Hermes Real Estate and MEPC, along with the BT Pension Scheme (BTPS) and other asset owners, will be developing significant mixed-use urban regenerations in Manchester, Leeds and Bristol along with science and technology parks at Silverstone and Oxford. These developments include NOMA, the 20-acre commercially-led development in the heart of Manchester and the already established urban quarter, Wellington Place in Leeds. With the addition of MEPC, Hermes will be well positioned to continue delivering a successful outcome across all these sites for the benefit of BTPS and other asset owners.
The MEPC brand, which goes back to 1946 and has been associated with many UK real estate developments, will be acquired by Hermes but remain in use.