CBRE Group Inc.
), the world's largest commercial real estate services firm in
terms of 2011 revenue, has recently strengthened its footprint in
the Asia Pacific region by acquiring its affiliate company in
Vietnam for an undisclosed amount. The transaction would enable
CBRE Group to offer seamless integrated services to cater to the
increasing demands of South-East Asia.
The acquiree, CB Richard Ellis (Vietnam) Co. Ltd., provides a host
of services in the region: property sales, office and retail
leasing, occupier advisory services, residential project marketing,
property and facilities management, project management, consulting,
research and valuation. With such a diverse product portfolio, the
affiliate company was a leading real estate service provider in
Vietnam and had a significant market share.
The acquisition is expected to be accretive to future earnings, as
the affiliate company would eventually have more resources to
further expand its portfolio and tap into the premier global
network of the parent company. On the other hand, the transaction
would complement CBRE Group's market dominance in Singapore, China,
and the entire Asia Pacific region.
In addition, Vietnam is expected to be a key market for the
company with strong long-term growth potential as a low-cost
business hub once its market-based economy matures. Consequently,
the transaction is a win-win deal for both the participating
CBRE Group is the global market leader in commercial real estate
brokerage and advisory services for property leasing and sales,
forecasting, valuations, origination and servicing of commercial
mortgage loans, as well as project and real estate investment
management. The company has an extensive knowledge of domestic and
international real estate markets that enables it to operate as a
single-source provider of real estate solutions.
CBRE Group has a hard-to-replicate intellectual capital and
technology resources that develop and deliver superior analytical,
research and client service tools to its professionals that enable
it to meet diverse client needs. The Asia Pacific segment operates
in 11 countries, primarily in China, Hong Kong, India, Japan,
Singapore, South Korea, Australia and New Zealand. The Asia Pacific
segment accounted for 13.4% of 2011 revenue.
We maintain our Neutral rating on CBRE Group, which presently has a
Zacks #3 Rank translating into a short-term Hold recommendation.
However, we have an Underperform rating and a Zacks #5 Rank
(short-term Strong Sell) for
NorthStar Realty Finance Corp.
), one of the peers of CBRE Group.
CBRE GROUP INC (CBG): Free Stock Analysis
NORTHSTAR RLTY (NRF): Free Stock Analysis
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