CBRE Group Inc.
) disclosed the acquisition of Richmond, Va.-based KLMK Group - a
leading healthcare consulting & project advisory firm. The
strategic move is aimed at enhancing its healthcare platform and
thereby serving the escalating demand generated by healthcare
systems in the U.S.
KLMK Group offers project advisory, facility consulting and
facility activation solutions to the U.S. healthcare industry.
The acquired company will now be incorporated into CBRE Group's
Healthcare platform under the guidance of Jim Hayden - CBRE
Healthcare's Executive Managing Director.
Also, CBRE Group declared the appointment of John Kemper as
Senior Managing Director of CBRE Healthcare to assist Jim Hayden
in the amalgamation process. Notably, the CBRE Healthcare of CBRE
Group offers widespread facility solutions to over 60 major
hospitals and healthcare systems and above 4,500 physician
practices across North America.
The healthcare industry fundamentals are on the rise with
healthcare spending expected to be 20% of the U.S. GDP. This
prompted healthcare systems to improve their facility management
and capital spending programs. Consequently, healthcare systems
are capitalizing on the prospects of monetizing assets, reducing
expenses and enhancing overall patient experience.
This positive scenario justifies the acquisition of KLMK by
CBRE Group, which has been making concerted efforts to meet this
rising demand. Notably, this strategic buyout will further
strengthen CBRE Group's healthcare platform with the addition of
KLMK professionals to its highly efficient team of 650 healthcare
Last week, CBRE Group reported its third-quarter 2013 results
with adjusted earnings of 30 cents per share missing the Zacks
Consensus Estimate by 3 cents. However, it was 15% higher than 26
cents earned in the prior-year quarter. Though the company
experienced a rise in revenues, higher expenses were a
Hence, this commercial real estate investment trust (REIT)
currently carries a Zacks Rank #4 (Sell). Better performing REITs
Jones Lang LaSalle Incorporated
General Growth Properties, Inc
Healthcare Trust of America, Inc.
). All the above stocks hold a Zacks Rank #2 (Buy).
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