Smaller rival bought by CB Richard Ellis
The commercial real estate company CB Richard Ellis Group Inc said it would buy smaller rival Trammell Crow Co for $1.9 billion in cash, expanding its business of managing properties for large corporations.
The acquisition, which includes the assumption of debt, will allow CB Richard Ellis to generate a more consistent revenue stream from long-term contracts, making it less dependent on one-shot property sales and leasing brokerage fees.
“Part of (our) strategy was to continue to diversify the revenue,” CB Richard Ellis chief executive Brett White told Reuters. “This is really the sweet spot of what Trammell Crow does.”