CBRE Buys South Carolina-Based Affiliate - Analyst Blog

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CBRE Group, Inc. ( CBG ) disclosed the acquisition of Greenville, S.C.-based affiliate. The move will help the company boost its services offering and promote its business further.

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. ( KW ), NorthStar Realty Finance Corp. ( NRF ) and RE/MAX Holdings, Inc. ( RMAX ). All these stocks carry a Zacks Rank #2 (Buy).



CBRE GROUP INC (CBG): Free Stock Analysis Report

KENNEDY-WILSON (KW): Free Stock Analysis Report

NORTHSTAR RLTY (NRF): Free Stock Analysis Report

RE/MAX HOLDINGS (RMAX): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: CBG , KW , NRF , RMAX

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