CBRE Group, Inc.
) disclosed the acquisition of Greenville, S.C.-based affiliate.
The move will help the company boost its services offering and
promote its business further.
CBRE GROUP INC (CBG): Free Stock Analysis
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In particular, CBRE Group acquired the commercial real estate
brokerage, investment property sales and property management
services business of The Furman Co., Inc. and some of its
affiliates. As a matter of fact, these businesses have doled out
as CBRE's associate serving the 10-county Upstate South Carolina
region. Collectively, these businesses functioned as CBRE |
Furman since 2010 and will now operate as CBRE.
This acquired property has solid synergies with CBRE's existing
offices across the region. It brings on board 18 sales and
leasing experts and other staff along with 4.5 million sq. ft. of
office, retail and industrial property under management.
Strong growth in employment and rising inhabitants in
Greenville's central business district led to the healthy demand
for office, retail and industrial space in Upstate South
Carolina. Host of private sector and university-based research
centers occupy this region that drive the automotive, life
sciences, plastics and photonics industries.
To leverage on the growing fundamentals of the region, the
company had earlier (in November, 2013) purchased CB Richard
Ellis Carmody affiliate in Charleston, S.C. It manages nearly
four million square foot of commercial property.
CBRE Group has been actively engaged in deals for expanding
business in the U.S. and U.K. In December, CBRE announced the
completion of the acquisition of UK-based commercial building
technical engineering services provider - Norland Managed
Services Ltd. - to expand its corporate outsourcing platform in
Europe. CBRE also purchased the leading facilities cost analytics
firm, Whitestone Research Corporation.
CBRE Group also boosted its service offerings in San Francisco
with the purchase of commercial real estate services firm, The
CAC Group. As market conditions continue to improve, we believe
that such opportunistic acquisitions would serve as growth
drivers, supplementing the company's organic growth.
Yet, we believe that the regulatory limits on
Government-Sponsored Enterprises' (GSEs) lending would continue
to substantially pressurize revenue and profits for the
commercial mortgage brokerage business going forward.
CBRE currently has a Zacks Rank #4 (Sell). However, other players
in the real estate operations industry, which look attractive at
current levels, include
Kennedy-Wilson Holdings, Inc.
NorthStar Realty Finance Corp.
RE/MAX Holdings, Inc.
). All these stocks carry a Zacks Rank #2 (Buy).