Cushman & Wakefield Acquires DTZ in $2B Deal

DTZ announced today that it had reached a definitive agreement with Cushman & Wakefield to merge, creating one of the largest global real estate services companies. Exor SpA, an Italian investment firm that owns most of Cushman & Wakefield, said Monday that DTZ will buy Cushman for $2.04 billion. The transaction is expected to close before the end of the year and is subject to customary closing conditions. The merged company will operate under the Cushman & Wakefield brand and have $5.5 billion in annual revenue and 43,000 employees.

"DTZ is elated to be merging under the prominent Cushman & Wakefield brand. The companies have remarkably complementary skills and reach in different geographies – whether in New York, London or Shanghai, this will be a formidable combination," said Brett White, who will assume the role of Chairman and Chief Executive Officer of the combined company. White added, "While breadth and depth are important to serve clients, it's not just about size. It's also about local expertise and deep customer service, which are strong traits of Cushman & Wakefield and DTZ, and ultimately what will differentiate us going forward." Mr. White is an industry leader with over 30 years' experience whose previous role was as CEO of CBRE.

"This transaction builds upon the considerable momentum we've achieved over the past 18 months and positions Cushman & Wakefield to deliver incremental value to clients worldwide from a broadened and strengthened global service platform," said Edward Forst, President and Chief Executive Officer of Cushman & Wakefield. "The combined company will truly represent the best our industry has to offer, with an enhanced ability to help clients achieve their goals and to deliver rewarding prospects for the tremendous Cushman & Wakefield team."

For more news and information visit Blumberg Partners.

Major CRE Firms Report 3Q Deal Slowdown

A new report from CoStar Group examines the slowed activity in commercial real estate during the third quarter this year, and the causes. With third quarter earnings calls being hosted this week, the largest publicly traded CRE firms have indicated that the lull in leasing and sales activity in the United States reflects cautious businesses waiting for results from the Presidential election, national tax and debt issues, and concerns regarding the ongoing debt crisis in Europe coupled with the slowdown in Asian economic growth.

Comments from industry leaders quoted in the CoStar article include:

"The market environment turned more cautious in the third quarter," noted Brett White, CEO of Los Angeles-based CBRE Group Inc. "Many investors and occupiers deferred making decisions and commitments. The current recovery, unlike previous ones, remains frustratingly slow and inconsistent. Nevertheless, we continue to believe that the recovery is ongoing and as we've been saying for some time, remain subject to quick swings in market sentiment."

"We believe we see that business is coming our way because of general uncertainty and hesitancy, and that traditionally favors the strong brands in any markets, and ours is no exception," said JLL CEO Colin Dyer, participating in the company's conference call Tuesday morning via mobile phone due to dislocation by the hurricane. "For next year, we anticipate markets that are not going to get worse, but at the same time, not improving as quickly as businesses might hope," he said. "There are encouraging signs. The U.K. emerging from recession and China perhaps, turning around its declining growth rates. But there are also global-scale issues that concern business confidence, the post-election fiscal cliff in the U.S. and the ongoing issues with sovereign debt in Europe being the two principal examples."

For more news and information visit Blumberg Capital Partners.

CBRE Buying ING Real Estate for $940M

CB Richard Ellis Group, Inc. and ING announced this week that CBRE would be acquiring most of the real estate investment management business of ING Group NV for $940 million in cash according to a Boomberg report. The acquisitions include substantially all of the ING Real Estate Investment Management (ING REIM) operations in Europe and Asia, as well as Clarion Real Estate Securities (CRES), its U.S.-based global real estate listed securities business. CBRE will also acquire approximately $55 million of CRES co-investments from ING and potentially interests in other funds managed by ING REIM Europe and ING REIM Asia.

"ING REIM, when combined with our existing Global Investment Management operations, will provide us with a significantly enhanced ability to meet the needs of institutional investors across global markets with a full spectrum of investment programs and strategies," said Brett White, CB Richard Ellis’ chief executive officer. "Our firms fit together well and our investment program offerings are highly complementary. The combined enterprise will further diversify our revenue sources and as the global market leader, we will redefine success in real estate investment management."

In a separate transaction, ING has agreed to sell the private market real estate investment manager of its US operations, Clarion Partners, to Clarion Partners management in partnership with Lightyear Capital LLC for $100 million.

"We are pleased to have found in CB Richard Ellis, and Clarion Partners management together with Lightyear, dedicated and solid partners to build on the leading positions of these REIM businesses and ensure continuity of investment teams in managing client assets in their best interests," said William Connelly, CEO of ING Commercial Banking.

For more news and information visit Blumberg Capital Partners.