It is not only the FIFA 2014 World Cup Trophy that will march
into Germany now as commercial real estate services and investment
CBRE Group, Inc.
), is also strengthening its presence in the country by signing a
deal to acquire Preuss Gesellschaft mbH and its subsidiaries.
This represents CBRE's second acquisition in this country this year
after the purchase of the real estate technical consulting firm --
VALTEQ Gesellschaft mbH - in February this year.
Subject to the German regulatory nod, this acquisition of Preuss, a
company that is engaged in project management of new real estate
development and overhaul of large properties, is expected to close
by the end of third-quarter 2014. Founded in 2003 by Dr. Norbert
Preuss, the company has a team of around 100 professionals
comprising architects, civil engineers and HVAC engineers and has
offices in Munich, Berlin, Frankfurt and Dusseldorf.
The buyout is a strategic one for CBRE, given the prospects for
solidifying the company's building consultancy offering in this
major market. Notably, the other acquisition - VALTEQ -
broadened CBRE Group's consultancy platform in Germany and
diversified its service offerings and brought on board VALTEQ's
team of professionals comprising civil engineers, architects,
economists, geologists and service technicians.
Going forward, we believe that with market conditions continuing to
improve, opportunistic acquisitions would serve as growth drivers,
supplementing the company's organic growth. Moreover, improving
property sales, leasing and outsourcing business augur well.
CBRE currently carries a Zacks Rank #3 (Hold). Investors interested
in the real estate industry may also consider stocks like
Alexander & Baldwin, Inc.
AV Homes, Inc.
LGI Homes, Inc.
). All these stocks carry a Zacks Rank #2 (Buy).
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