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CBRE Acquires Majority Stake in Japan Affiliate

TOKYO-Six years after acquiring a 20% interest in Ikoma, one of the largest real estate services firms in Japan, CB Richard Ellis increases its stake to 51%. The head of CBRE's Asia Pacific region tells GlobeSt.com that from a property services and capital investment perspective, Japan is the emerging market alternative to New York and London.

By Brian K. Miller | Updated on January 09, 2006

TOKYO-Publicly held CB Richard Ellis Group Inc. of New York has exercised its option to acquire a majority interest in its Japan affiliate, Ikoma CB Richard Ellis. As part of the deal, Ikoma will combine operations with CB Richard Ellis’ majority-owned operation in Tokyo, creating an entity with $100 million in annual revenue.

CBRE acquired a 20% stake in the company, then Ikoma Shoiji, in 1999, along with an option to acquire a majority stake. CBRE upped its stake in Ikoma to 22.8% in 2003. With this latest transaction, it now owns 51% of the company. In each of the transactions, the sellers were Ikoma senior executives, with the largest shareholder being company president Tatsumi Hanaya.

Ikoma has 800 employees in 20 offices, making it the largest nationwide player in Japan. Last year, it completed leasing and investment transactions valued at approximately $885 million and had about nine million sf under management. Rob Blain, the head of CBRE’s Asia Pacific region, tells GlobeSt.com that from a property services and capital investment perspective, Japan is the emerging market alternative to New York and London.

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