MFS currently owns a 30 per cent share in GIP.
The new 70 per cent purchase terminates early arrangements by MFS and GIP which provided for a progressive increase in MFS's stake in GIP over a five-year period.
The price being paid by MFS for the shares in GIP reflect an underlying enterprise value for GIP of $97.95 million.
MLS shareholders need to approve the transaction at this year's annual general meeting.
GIP will continue to expand its operations in the areas of funds management, structured finance and property investment and advisory work as part of the broader MFS real estate group.
As a result, all of MFS's real estate investment banking operations is likely to be moved under the leadership of GIPL Executive Chairman, Joseph Gersh.
As part of the merger, GIP principals, Gersh and Adam Kaye and a number of key executives have signed five-year employment contracts with the company.
MFS has also confirmed the appointments of former Investa Property Group chief executive Guy Farrands as chief executive of the MFS Diversified Property Group and of MFS listed real estate products.
Former Valad Property Group executive Bill Grounds will take the helm as chief executive of unlisted property and real estate Funds at MFS.
This substantial strengthening of the MFS property executive management group with key separate focuses on listed, unlisted and investment banking activities in the real estate sector fortifies MFS target of achieving at least $10 billion assets under management by 30 June 2008.
MFS's purchase of GIP comes just a week after MFS confirmed it was in discussions with financial services group City Pacific.
Sydney and Melbourne are expected to record the biggest declines. ...
Australia’s housing downturn is building momentum, according to CoreLogic. ...