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CBRE Buys UK Property Developer

By on Jul 04, 2019 in Featured, Residential

CBRE Buys UK Property Developer

US real estate firm CBRE Group Inc said yesterday that it would buy British property developer Telford Homes Plc for about £267 million ($336 million) in a bid to expand into Britain’s apartment rental market.

The deal is an attempt to tap into the budding build-to-rent market in Britain, which is in its infancy compared to the United States where the segment has boomed over the decades.

“The UK is in the early stages of a secular shift toward institutionally-owned urban rental housing, similar to what we have seen in the US over the last two decades,” CBRE chief executive Bob Sulentie said in a statement.

“In particular, Los Angeles, California based CBRE sees Telford as an entry into the build-to-rent market in Britain’s capital,’’ said Aynsley Lammin, an analyst at Canaccord Genuity.

“They’re seeing what’s happened in the US and they would expect more build-to-rent properties in London over time,” he said. “London is a big international city and it is obviously going to be the area where that model makes the most sense.”

In a separate property deal announced yesterday, student housing provider Unite Group Plc — in which a unit of CBRE holds a 1.7% stake — will acquire rival Liberty Living Group Plc for £1.4 billion ($1.76 billion).

The portfolio consists of 24,021 beds, and was valued at £2.2 billion as of May 31, according to a Unite company statement.

After the completion of the deal, Telford will become a part of its Trammell Crow Company, a Texas-based real estate developer and property manager, which CBRE acquired in 2006.

As of March 31, it had projects worth $9.7 billion in process.

CBRE said Telford CEO Jon Di-Stefano would continue to lead the business and the company’s board had agreed to vote in favour of the deal.

Interesting in renting more properties in UK contact CBRE

Source: Bangkok Post – 4 July 2019

Nora has been in the Corporate Communications arena for a number of years. Nora's role is to communicate all newsworthy items that are of a PR nature.

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