To capitalize on the growing opportunities in the Pacific region
and add strength to its corporate real estate services platform,
CBRE Group, Inc.
) has acquired Australian firm Paragon Project Management Pty Ltd.
The acquisition also brings on board Paragon's national team of 26
Paragon's acquisition is a strategic fit, given its expertise in
working for both the owners and occupiers of space in Australia and
New Zealand across all project areas. Over the last 25 years, the
company has offered a number of consultancy services to the
building and construction industry, with offices in Sydney,
Brisbane and Perth.
Paragon's credentials involve assignments for managing the fit-out
of BHP Billiton's 35-floor occupancy in Brookfield Place, Perth;
workspace projects for ANZ, Canon and Fairfax Media in Sydney and
the ABC South Bank Studios in Brisbane, among several others. This
acquisition hence would help CBRE grow its Global Corporate
Services business, in particular.
The experts from Paragon will be incorporated into CBRE's current
Project Management division in Pacific. This combined operation
will hire 70 project management professionals, with the integrated
CBRE Project Management team led by Paragon founder Ian Rea.
Strategic buyouts have played a major role in the expansion of
CBRE's geographic coverage as well as its service offerings.
Recently, the company announced its acquisition of U.S. Equities
Realty's U.S.-based operations and consequent merging of their
respective Chicago businesses. U.S. Equities has been a major
player, accomplishing deals with companies like Ventas Inc. (
), Nike Inc. (
) and IBM Corp. (
Apart from these, CBRE also disclosed the acquisition of Preuss
Gesellschaft mbH and its subsidiaries, marking its second
acquisition in Germany this year, after the real estate technical
consulting firm - VALTEQ Gesellschaft mbH - acquired in
Last week, CBRE came up with second-quarter 2014 adjusted earnings
of 36 cents per share, a penny ahead of the Zacks Consensus
Estimate and up 16% year over year. Results were driven by solid
growth in leasing, particularly in the U.S. Based on a sound
performance in the first half of this year, the company has raised
its adjusted earnings per share expectation by 5 cents from the
With market conditions continuing to improve, we believe that
opportunistic acquisitions for this Zacks Rank #2 (Buy) stock would
serve as growth drivers, supplementing the company's organic
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