International real estate investment manager HDG is seeking to grow its fund and asset management business through a merger or acquisition in Europe, HDG founder Harold Garrison told PropertyEU. Most of the M&A conversations over the last nine months have been with European companies, he said.

Garrison said the company had already held talks with two UK-based parties, but ultimately one decided to liquidate while the other chose to remain independent. Nevertheless HDG remains undeterred, he stressed. ‘We have feelers out and would be happy to talk to any companies based in Germany or elsewhere in Western Europe or the US.’

Garrison said HDG is keen to find a fund and asset management merger candidate that could provide diversification by market and asset type. HDG is also open to taking over the management of portfolios, he added. ‘We did a lot of that in the late 1990s so that is something we would consider.’ He stressed that HDG is not on the market itself as a takeover prospect.

‘The banking and funding situation remains challenging on all fronts and consequently the market place wants to know who is acquisitive - who is looking to do deals. There are very few small international firms in our position, which have got the funding to get out there and be active,’ Garrison said.

Citing the adage that ‘one and one make three’, Garrison said HDG had a very solid platform and track record through all the downturns since the early 1980s that could be very attractive to a smaller company seeking to grow in the current unsettled market conditions.

Founded in 1982, HDG is a veteran of several cycles and has completed $5.1 bn of real estate investments. The company has offices in Indianapolis, New York, London, and Dubai. At end-March this year HDG had $2.2 bn of assets under management. HDG is also a specialist in investments suitable for Shariah investors.