CBRE Group Buys Longtime Omaha Affiliate; Will Buy UK-Based Multifamily Developer

LOS ANGELES— CBRE Group, Inc. reports it has acquired its affiliate serving the greater Omaha, Nebraska area—CBRE | MEGA.

Founded in 1975, CBRE | MEGA is one of Omaha’s largest full service commercial real estate services firms with more than 100 professionals providing sales, leasing and project management services and managing a portfolio of more than 5.5 million square feet. The firm has been a CBRE affiliate since 2000.

CBRE in Omaha will continue to be led by Bennett Ginsberg, who will serve as managing director. “This is a great move for our firm and our people strategically and culturally,” Ginsberg says. “Our clients will benefit from CBRE’s broad spectrum of services, global reach and deep resources, including significant and ongoing technology investments. We could not be more excited about our future.”

John Latessa, president, advisory services, Midwest Division, CBRE, adds, “CBRE | MEGA is a perfect complement to our existing presence in the Midwest. The team is comprised of the leading client-service professionals in Omaha and will help us to deliver great results for our clients through enhanced collaboration and broad-ranging expertise.”

No financial terms of the transaction were disclosed.

Last week, CBRE Group announced it intends to acquire all the issued and to-be-issued shares of Telford Homes Plc., a leading developer of multifamily residential properties in London, with a development in-process portfolio (total project cost) of $1.66 billion (£1.32 billion).

The pending acquisition represents a strategic expansion of CBRE’s Trammell Crow Company real estate development business.

Telford is focused on opportunities to develop middle-market build-to-rent properties, a fast-growing component of the London housing sector.

Telford generated approximately $446 million (£354 million) of revenue and $50 million (£40 million) of pre-tax profit for the 12 months ended March 31, 2019. Under the terms of the planned transaction, Telford shareholders will receive $4.41 (£3.50) per share in cash, valuing Telford at $336.9 million (£267.4 million). CBRE has put in place a bridge acquisition facility for purposes of confirming that resources are available to fully satisfy the offer to Telford shareholders, but intends to fund the acquisition through a combination of cash on hand and availability within its revolving credit facility.

“Telford gives us a compelling opportunity to build on the success of Trammell Crow Company,” said Bob Sulentic, president and chief executive officer of CBRE. “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. Telford is well positioned to lead this trend, and their more than 300 talented professionals operating in London are a great addition to our company.”

The acquisition of Telford also positions Trammell Crow Company to opportunistically expand its development platform over time in the UK and Europe.