U.S. firm CBRE to acquire British developer Telford Homes for $336 million

CBRE Group Inc to Acquire Telford Homes for $336 Million, CEO to Lead Company

In a strategic move to expand into the UK’s apartment rental market, US real estate firm CBRE Group Inc has announced its plan to acquire British property developer Telford Homes Plc for about 267 million pounds ($336 million). The all-cash recommended offer of 350 pence per share represents a premium of about 11% to Telford’s closing price on Tuesday, causing Telford shares to rise 12% to 353 pence on London’s AIM market.

CBRE Chief Executive Officer Bob Sulentie expressed excitement about the acquisition, emphasizing the UK’s shift towards institutionally-owned urban rental housing. Analysts believe that CBRE’s interest in Telford is a strategic entry into Britain’s build-to-rent market, particularly in London, where the model is expected to gain traction in the coming years.

CEO Jon Di-Stefano will continue to lead Telford, with the company’s board already in favor of the deal, pending shareholder approval. The acquisition comes at a crucial time for Telford, as the company reported a 13% drop in annual profit due to challenges in the Brexit-dampened London housing market.

CBRE’s offer price is considered final, but the company reserves the right to raise it if another offer is presented for Telford. With this acquisition, CBRE aims to leverage Telford’s expertise in the build-to-rent segment and further expand its presence in the UK real estate market.

The acquisition of Telford is part of a larger property deal for CBRE, as its unit is set to acquire rival Liberty Living Group for 1.4 billion pounds. This move signifies CBRE’s commitment to strengthening its position in the European real estate market amidst ongoing economic uncertainties.