CBRE announces plans to acquire Telford Homes


CBRE Group has announced plans to acquire Telford Homes to expand its real estate development business, Trammell Crow Company

The acquisition of Telford Homes represents a strategic expansion of CBRE’s Trammell Crow Company, which has achieved robust earnings growth over the past five years.

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

Telford generated approximately $446m (~£354m) of revenue and £40m of pre-tax profit for the 12 months ended March 31, 2019. Under the terms of the planned transaction, Telford shareholders will receive £3.50 per share in cash, valuing Telford at £267.4m.

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. It intends to fund the acquisition through a combination of cash on hand and availability within its revolving credit facility.

Bob Sulentic, president and chief executive officer of CBRE, said: “Telford gives us a compelling opportunity to build on the success of Trammell Crow Company.

“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 Homes also positions Trammell Crow Company to expand its development platform over time in the UK and Europe.

Jon Di-Stefano, chief executive officer of Telford Homes Plc, commented: “Being part of Trammell Crow Company will allow Telford to enhance its growth in the build-to-rent / multifamily market in London.

“Our management team have found that Trammell Crow Company is aligned with both our culture and our current strategy and its platform will give Telford access to far greater resources, improved technology and wide-ranging expertise.”

Upon completion of the acquisition, which is expected in the third quarter of 2019, Telford will operate as part of the Trammell Crow Company and its financial results will be reported within CBRE’s Real Estate Investments business segment. Di-Stefano will continue to run the Telford Homes business after the acquisition closes.


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