Lutnick Targets Fourth Quarter for Spin-Off of Freshly Rebranded Newmark Knight Frank as Separate Publicly Traded Company

Will Newmark Knight Frank or Cushman & & Wakefield Become Commercial Property Solutions Sector’s Latest Firm to Go Public?

Howard Lutnick, chairman and president of Newmark Knight Frank moms and dad business BGC Partners, Inc., (Nasdaq: BGCP ), stated he expects the scheduled spin-off of Newmark as a separate publicly traded business to take place in the fourth quarter.

“We want to do the initial public offering of Newmark in this calendar year,” Lutnick stated this afternoon throughout a presentation at the Sandler O’Neill + Partners Global Exchange & & Brokerage Conference in New york city City.

“You can assume that’s not going to be the summer due to the fact that it’s unlikely we’ll take a business public in August, and we’re not going to do it at Christmas. Someplace in late September, October, November would be the type of time frame we’re taking a look at.”

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Lutnick stated NKF, which dropped the Grubb name from its logo and other branding on its website and press products over the weekend, said the business will probably be called merely Newmark by the time the spin off occurs. On Tuesday, Newmark public relations representatives validated the go back to NKF, its corporate name before Newmark acquired Grubb & & Ellis in April 2012 and rebranded as Newmark Grubb Knight Frank (NGKF).

“We had Grubb, and we’ll most likely streamline the name. There’s (still) too many names therein,” Lutnick told analysts at the conference, which is mostly a spotlight for the publicly traded electronic bulletin board trading group that is the core company of BGC and its biggest shareholder, investment bank Cantor Fitzgerald & & Co.

When it eventually spins-off its property services affiliate, “it will probably simply be called Newmark,” Lutnick said.

After being gotten by BGC in 2011 and incorporating the bankrupt Grubb the following year, Newmark utilized the parent business’s financial services connections to Home Realty Advisors (ARA), and several large regional brokerage firms, consisting of Silicon Valley, CA based Cornish & & Carey Commercial.

NKF, headed by CEO Barry M. Gosin and President James D. Kuhn, went on to craft the hiring of popular manufacturers and acquisition of firms in capital markets and other crucial property market sections, rampining up its efforts after Cushman’s 2015 acquisition by the TPG consortium.

BGC Partners has actually been thinking about alternatives to open significant investor value given that late 2015, consisting of relocations could potentially include selling or spinning off Newmark and other private departments of the company, culminating in the mid-February filing of a private prospectus with the SEC to spin off the CRE firm as a separate openly traded business.

Cushman & & Wakefield is also commonly thought to be planning an IPO in the near future. Asked Wednesday by an expert whether the timing of Cushman’s possible offering might have an effect on NKF’s spin off by either leading the way or crowding the market, Lutnick replied that Newmark is the fastest-growing industrial real estate services business by scale.

“(Our) stats are just much better,” Lutnick said. “Any similar results are the exact same numerous due to the fact that it’s attractive. Our numbers are really, very appealing.”

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