US-headquartered real estate firm Eastdil Secured has executed a management buyout to take back control of the business from owners Wells Fargo & Co for an undisclosed sum.
Guggenheim Investments and Singapore sovereign wealth fund Temasek Holdings have also reached an agreement to take ownership stakes in the firm, while Wells Fargo will retain a minority share.
'Guggenheim Investments, on behalf of certain institutional clients, and Temasek represent ideal partners for Eastdil Secured as we embark on this next stage of growth,' said Eastdil CEO Roy March (pictured). 'Through this transaction, we will be better able to serve our clients with investments in enhanced technology, a broader footprint and deeper global relationships.'
Wells Fargo acquired the property firm in 1999 for a reported $150 mln (€132 mln), and first debated selling the business last summer, with current takeover plans reported in March.
As an independent business, the firm will maintain its name and bases in New York and Los Angeles, and continue to be led by Benjamin Lambert as chairman, March as CEO, Michael Van Konynenburg as president, as well as its current management committee. Eastdil's European HQ in London will also be retained.
According to Eastdil Secured, the business advised on 827 transactions worth $243.5 bn in 2018, and will seek to expand its business across the US, Europe and Asia in the wake of the deal.
The firm’s public market investment bankers will be absorbed by Wells Fargo’s Corporate & Investment Banking division.