In order to boost its cross-border Global Corporate Services
CBRE Group Inc.
) penned a renewal and expansion deal with Bank of America
Merrill Lynch ('BofAML') of
Bank of America Corp.
). Besides providing services to BofAML's business across Latin
America (LATAM), Asia Pacific (APAC) and Europe, the Middle East
and Africa (EMEA), the company will now offer services to
BofAML's operations in South Africa and its Enterprise Services
Particularly, as per the renewal deal, CBRE Group will offer
transaction, critical engineering, project and facilities
management, portfolio and consultancy services for BofAML through
GCS across LATAM, APAC and EMEA regions. Overall, with the
contract, CBRE Group will now handle a portfolio for BofAML,
spanning 4.4 million square feet in 41 countries across LATAM,
APAC and EMEA.
With market conditions continuing to improve, we believe such
opportunistic deals would serve as growth drivers for CBRE Group.
Also, the strengthening of ties with its clients bodes well for
improvement of the company's GCS business going forward.
Earlier this month, CBRE Group came up with its fourth-quarter
2013 results. The company's adjusted earnings stood at 67 cents
per share, a penny ahead of the Zacks Consensus Estimate and up
22% year over year.
Quarterly results were driven by strong contribution from the
global investment management and property sales, improved leasing
momentum and occupier outsourcing business. Yet, commercial
mortgage brokerage revenue continued to decline owing to the
negative impact from the U.S. Government-Sponsored Enterprises'
(GSEs) initiatives to scale back their lending activity, as
commanded by the regulators.
CBRE Group currently carries a Zacks Rank #4 (Sell). Some
better-ranked stocks in the real estate operations industry
NorthStar Realty Finance Corp.
Jones Lang LaSalle Inc.
). Both stocks carry a Zacks Rank #2 (Buy).
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