CB Richard Ellis is to buy Dallas-based real estate service provider Trammell Crow for EUR 1.7 bn ($2.2 bn) in a move that will double CBRE's property management business. CBRE, the world's largest real estate advisor, agreed to pay $49.1 per share and to assume Trammell's corporate debt. The transaction is expected to be concluded before the end of the year or in early 2007, subject to approval of Trammell's shareholders and federal regulatory agencies.
CB Richard Ellis is to buy Dallas-based real estate service provider Trammell Crow for EUR 1.7 bn ($2.2 bn) in a move that will double CBRE's property management business. CBRE, the world's largest real estate advisor, agreed to pay $49.1 per share and to assume Trammell's corporate debt. The transaction is expected to be concluded before the end of the year or in early 2007, subject to approval of Trammell's shareholders and federal regulatory agencies.
The merger will boost CBRE's 2006 revenues to about $4.4 bn and 21,000 employees, making it the first commercial real estate company to qualify for the FORTUNE 500 list of the largest US companies. Our strategic objective has long been to create the market-leading commercial real estate firm delivering comprehensive solutions to our clients. Well targeted acquisitions have played a pivotal role in our strategy,' CBRE's president and ceo Brett White said. The acquisition of Insignia in 2003 gave CBRE pre-eminence in its transaction business, he said, and 'now the acquisition of Trammell Crow Company creates the best-in-class corporate outsourcing and institutional property management business'.
Trammell Crow provides integrated outsourcing solutions to many corporate players in the US and the combined company with CBRE will provide services to more than 85% of the FORTUNE 100. Trammell's European business is less pronounced. In 2000 Trammel formed an alliance with UK property broker Savills to expand its business in Europe and in Asia. Now Trammell's EMEA division has offices in the UK and France and it services clients across a portfolio of 2.2 million m2 over 27 countries. 'This is a very logical fit because CBRE is very strong in transactions and Tramell Crow has little presence outside the US,' Aubrey Adams, the ceo of Savills, told Bloomberg. Trammell owns 20% of Savills and CBRE plans to sell the stake for EUR 224 mln.