Jones Lang LaSalle Incorporated
), which shortened its name to "JLL" in Mar 2014, announced the
acquisition of CLEO Construction Management as part of its effort
to enhance healthcare-oriented real estate services.
The acquisition of Orange County, CA-based CLEO, a construction
project management services firm that concentrates on medical
facilities, is expected to close later this month, subject to
customary closing norms.
As a matter of fact, healthcare-facility owners are aggressively
vying for expansions and refurbishments to meet the rising demand
of their patient population. Healthcare facilities are seeking cost
reductions as well as risk minimization in terms of both operations
and capital projects, simultaneously aiming to raise the quality
and efficiency level of their facilities.
This, in turn, is driving the demand for healthcare
facilities-focused specialized real estate services in the West.
Hence, the CLEO acquisition is a strategic fit for JLL. Moreover,
with this deal, 13 people from CLEO come on board for JLL, with
Jeff and Tim Fyffe - the founders of CLEO - joining JLL as senior
These experts would report to Carlos Serra, Managing Director for
the Southwest Project and Development Services (PDS) Group.
Notably, the PDS group deals with over 12,000 projects annually,
and currently $12 billion in projects under management.
In addition to this acquisition, JLL is also strengthening its
services platform on the West Coast by recruiting old hand
healthcare brokers Paul Braun and Chris Ross for offering
healthcare leasing, investment sales and occupier services in San
We believe such strategic acquisition and opportunistic hires would
provide JLL the required capability for capitalizing on this
specialized real estate services market in the West, along with
assistance in managing complex healthcare projects.
JLL currently carries a Zacks Rank #3(Hold). Investors interested
in the real estate industry may consider better-ranked stocks like
Alexander & Baldwin, Inc.
AV Homes, Inc.
Kennedy-Wilson Holdings, Inc.
) All these stocks carry a Zacks Rank #2 (Buy).
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