Consistent with its strategy of maintaining keen focus on
Cousins Properties Inc.
) recently inked a deal with Cushman & Wakefield to sell off
its Third Party Client Services Business - Client Services Group
(CSG). The transaction, which is subject to customary conditions
and minimum third party consent, is expected to close by the end of
CSG provides third party services to owners of Class A office
buildings in Atlanta and Dallas. The services include leasing,
property management, and project management along with advisory
services related to acquisition, disposition, refinancing, asset
management and development. The division boasts a strong client
base - including
Bank of America Corp.
Prudential Financial, Inc.
iStar Financial Inc.
Midtown Manhattan-based Cushman & Wakefield is the world's
largest privately-held commercial real estate services firm. The
company advises and represents clients on all aspects by offering
various types of services, including leasing, sales and
acquisitions, equity, debt and structured finance, corporate
finance and investment banking, corporate services, property
management and others. Cushman & Wakefield has 243 offices
across 60 countries and employs more than 14,000 employees.
As per terms of the agreement, around 128 employees of Cousins
Properties will move to Cushman & Wakefield's Investor Services
division. The transition is a part of amalgamation of CSG's
property management, landlord leasing and management services with
Cushman's Investor Services division.
The division is a part of the company's Corporate Occupier and
Investor Services (CIS) group. CIS currently manages nearly 16,000
properties totaling more than 800 million square feet worldwide,
and has client firms like AEGON, Clarion Partners and AEW.
BANK OF AMER CP (BAC): Free Stock Analysis
COUSIN PROP INC (CUZ): Free Stock Analysis
PRUDENTIAL FINL (PRU): Free Stock Analysis
ISTAR FINL INC (SFI): Free Stock Analysis
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CSG's experienced brokerage professionals, strong client
relationships and successful track record in both markets is
expected to strengthen Cushman & Wakefield's leasing division
going forward. As a point of reference, the division stood strong
last year as it generated transaction volume of more than $45
billion on a worldwide basis.
Cousins Properties Inc. - a real estate investment trust (REIT) -
has a diversified portfolio with a broad array of product types -
office, retail, urban residential and single-family communities
that mitigate operating risks associated with the economic
down-cycles. Subsequent to the transaction, the company will
continue to own and operate its fee business that is not related to
The company recently reported second quarter 2012 FFO (funds from
operations) of 13 cents per share, beating the Zacks Consensus
Estimate by a penny. We presently have a long-term Neutral
recommendation on Cousins Properties. Moreover, the company retains
a Zacks #3 Rank (a short-term Hold rating).
Note: FFO, a widely accepted and reported measure of the
performance of REITs, is derived by adding depreciation,
amortization and other non-cash expenses to net income.