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Cushman & & Wakefield Files for Long-Awaited IPO

Updated: Backed By Private Equity Giants, Global Realty Firm Follows Newmark in Tapping Public Markets to Fund Development

After more than a year of market speculation, & Cushman & Wakefield today filed a registration declaration with the U.S. Securities and Exchange Commission for a going public.

The Chicago-based firm established in 1917 sent a confidential filing in April and has not yet divulged the number of shares it anticipates to provide or chosen an exchange or ticker symbol. Greenwich, CT-based Renaissance Capital, which focuses on investigating newly public business worldwide, estimated the offering might raise $500 million, while other reports said the company might take in up to $1 billion, with a total appraisal of more than $5 billion.

A Cushman & & Wakefield spokesperson Wednesday decreased to comment beyond the registration statement.

Cushman & & Wakefield, which reported revenue of $6.9 billion in 2017, has about 48,000 staff members around the world in about 400 offices in 70 countries. The company handles approximately 3.5 billion square feet of industrial space.

Credit: Cushman & Wakefield Cushman & & Wakefield is led by Executive Chairman and CEO Brett White, who invested 28 years at Cushman competing CBRE, where he served as president from 2001 to 2005 and CEO from 2005 until stepping down in 2012. John Forrester is the company’s worldwide president. He formerly was president, EMEA at DTZ prior to the merger with Cushman & & Wakefield

. The business was developed in its existing type in 2014 when personal equity firms TPG Capital, PAG Asia Capital and the Ontario Teachers’ Pension Plan Board obtained residential or commercial property services firm DTZ from UGL Limited. At the end of 2014, the firm’s principal investors obtained and Cassidy Turley and integrated it with DTZ.

Lastly, in 2015, the financial investment backers bought Cushman & & Wakefield from Italian investment company Exor and other investors, deciding to keep the Cushman & & Wakefield name.

Reports appeared in March that Cushman had actually resumed talks with investment bankers, with a potential filing in June or July.

In the filing, Cushman stated it would utilize profits from the offering to pay back financial obligation, consisting of delayed payments from the Cassidy Turley acquisition. TPG, PAG Asia Capital and the Ontario Educators Pension Plan Board, which now own more than 90% of the business’s shares, will continue to control a majority interest after the offering is finished.

Cushman & & Wakefield is tapping public markets following a duration of quick development stressed by a string of annual bottom lines following its 2014 acquisition from Exor. Yearly revenue has leapt each year, from $4.2 billion in 2015 to $6.2 billion in 2016, to $6.9 billion in 2017, inning accordance with the filing.

Cushman also reported annual bottom lines of $473.7 million, $449 million and $220.5 million during the very same duration. According to a March 2015 release by Exor, Cushman produced income of $2.85 billion and profits of $61.6 million in 2014, both records for the company.

With aid from a record very first quarter, both the overall variety of IPOs and proceeds are up greatly in 2018, with the 84 IPOs so far this year raising $25.1 billion, inning accordance with Renaissance Capital.

Real estate business make up about 3% of the total offerings this year, with the largest being a $1.2 billion IPO by VICI Residences, a Spring Valley, NV-based REIT concentrating on gambling establishment homes; and a $725 million offering by cold-storage supplier Americold Realty, both introduced in January.

The last real estate services company to check the market was Newmark Knight Frank and moms and dad BGC Partners, which finished a going public for the launch of Newmark Group, Inc. (Nasdaq: NMRK) last December, the first commercial property services firm to go public since the June 2015 IPO of Colliers International Group, Inc.

. Newmark Group debuted at $13.95 per share on Dec. 15 and traded as high as $16.66 in February prior to settling into the $13.50-$15 variety over the last few months. However, the business had to dramatically downsize its offer size and pricing amid weak initial reaction from financiers. Newmark shares closed Wednesday at $14.78, up almost 6% from the company’s public launching.

In its filing, Cushman made the case that the timing for an IPO is strong as the property market’s bull market continues. The international industrial home industry is projected to grow 5% annually to more than $4 trillion through 2022, outmatching overall service development. Cushman & & Wakefield and other large international companies are poised to continue to grow market share by acquiring and rolling up smaller sized rivals.

Morgan Stanley, JPMorgan, Goldman Sachs and UBS will lead the offering, helped by Barclays, BofA/ML, Citi, Credit Suisse, William Blair and TPG Capital BD.

Editor’s note: This upgrade includes an estimate of the IPO’s potential prices by Renaissance Capital.

Report: Cushman & & Wakefield Meeting Advisers on Possible IPO

Move May Signal Impending Public Filing by Independently Held Global Brokerage as IPO Market Posts Best Lead To Years

With its publicly traded rivals CBRE Group (NYSE: CBG)and JLL(NYSE: JLL)seeing big valuation gains in the past year year, Cushman & & Wakefield has re-started preliminary talks with lenders about a possible IPO, according to a report published by Bloomberg News this week.

Mentioning undisclosed sources, the report said the industry’s third-largest brokerage has recently met again with investment lenders relating to a possible going public later this year or next, with any choice on moving forward based upon market conditions and the business’s monetary efficiency.

The report comes as the overall U.S. IPO market concludes its best quarter in three years and the strongest first quarter earnings considering that 2008, in spite of the recent stock exchange sell, with business raising $15.6 billion with 43 offerings, according to a brand-new report by Renaissance Capital.

Independently held Cushman, led by a consortium headed by Fort Worth, TX-based TPG, started informal talks with investment banks early in 2015 about an IPO to be introduced as early as the 3rd quarter of 2017 or early 2018.

In the meantime, Newmark Knight Frank and moms and dad BGC Partners have launched Newmark Group, Inc. (Nasdaq: NMRK), which finished its initial public offering of 20 million shares of common stock in mid-December. While the prices of the downsized Newmark offering dissatisfied some experts, its shares have actually performed gradually given that going public. Newmark shares were trading at $15.18 in mid-day trading Thursday, an almost 9% increase from the stock’s Dec. 15 launch cost of $13.95.

Newmark is the first significant full-service CRE firm to go public given that Toronto-based FirstService Corp. spun off Colliers International Group Inc., which began trading on the Nasdaq Stock Exchange in June 2015.

Cushman has actually declined to discuss any plans for an IPO. The business has gone through a number of senior leadership modifications considering that private-equity company TPG acquired Cushman for about $2 billion in 2015.

Inning accordance with the Renaissance Capital report, the typical IPO acquired 9% throughout the quarter, with tech companies continuing to generate the most offerings along with the strongest profits.

The average size of offers remained fairly high at $143 million as a pickup in early phase biotech companies was offset by numerous large tech IPOs along with offer circulation from the industrial, energy and realty sectors, according to the report.

As a group, nevertheless, typical returns for the three deals in the realty sector, consisting of a $1.2 billion offering by VICI Residences and a $725 million deal by cold storage provider Americold Real estate Trust, decreased about 2% in the quarter – the only sector to post a decrease except for industrials, which pulled back by 28.6%.

Cushman & & Wakefield, Commercial Realty Lose Industry Leader

The business realty market is responding with shock to the abrupt passing of Joe Stettinius, a significant force behind the mergers that created the most recent iteration of Cushman & & Wakefield

. A stalwart of business real estate in the Washington, D.C., area for years, Stettinius acquired nationwide honor when he oversaw, with Mark Burkhart, the nationwide growth of Cassidy Turley.

Stettinius, a dedicated married man who was favored in the industry, went on to play a critical function in the mergers of Cassidy Turley and DTZ, and after that the mix of Cushman & & Wakefield and DTZ. Stettinius functioned as the very first CEO of the Americas of Cushman after the mergers. He most just recently served as executive vice chairman, Strategic Investments, Americas.

Deal-making was in Stettinius’ blood, stated CoStar creator and CEO Andy Florance. He was the grandson of Secretary of State Edward Stettinius, who served in that function for Presidents Franklin Roosevelt and Harry S. Truman in 1944 and 1945. In the well-known picture of the 1945 Yalta Conference, Edward Stettinius is backing up Roosevelt.

“Joe inherited that remarkable statesman capability,” Florance said. “He was simply fantastic at bringing individuals together. He empathized with each person he satisfied and with that capability he was the very best dealmaker I ever met.”

Stettinius’ death was announced Friday in an email from Shawn Mobley, Cushman & & Wakefield CEO, Americas, to Cushman workers. He was 55.

“It goes without stating that Joe was a significant force in the CRE industry for more than Thirty Years, starting with his days as an accomplished leasing agent, where he closed approximately 4.5 million square feet of leases for property owners of Washington, DC landmarks such as 1111 Pennsylvania Avenue, the Evening Star Building, and Hall of the States,” Mobley composed in the message.

“A significant motorist and orchestrator of the company’s success to this day, Joe played a pivotal function in the planning, preparation and execution of the merger of Cassidy Turley and DTZ, where he served as CEO of Cassidy Turley, and the merger of Cushman & & Wakefield and DTZ, where he served as Chief Executive, Americas,” his statement added.

Stettinius earned the respect and appreciation of his associates and rivals across the country. His settlement skills, developed during his time as a leasing representative, were vital as he merged Cassidy Turley and DTZ and then DTZ and Cushman & & Wakefield. Stettinius likewise was applauded for his handling of officially moving the headquarters of Cassidy Turley from St. Louis when he became CEO of the company.

His knowledge and executive skill resulted in Stettinius winning numerous awards and honors from the industrial realty press and his peers. Industrial Home Executive called him its 2015 Executive of the Year, and Washington Organisation Journal named him A lot of Admired CEO in 2013.

Stettinius’ deep network of associates, peers and good friends were still processing the news Friday afternoon.

“I am exceptionally sad, at the moment. Joe is, has, and will constantly be an impactful person in my life and profession,” stated John J. Fleury, president of Madison Marquette of Washington. Fleury acted as COO and CFO of Cassidy Turley and as president of the old Cassidy & & Pinkard Colliers.

“I took pleasure in the benefit of dealing with Joe for more than a decade and called lots of industry veterinarians, yesterday we lost among the truly terrific ones. His excitement, interest and entrepreneurialism gave rise to success of the business he dealt with,” Fleury said. “I can just wish to deal with such a pro in our industry again.”

“We will remember Joe for numerous things. Most of all we’ll remember that he loved a good deal, and he was enthusiastic about bringing 2 disparate groups together to develop something much better than they were before – he was a genius at linking people,” Mobley stated in his note to workers. “Thank you Joe for exactly what you provided for our market, for our company, and for our neighborhood. We’ll miss you.”

Stettinius is made it through by his other half Regina, child Isabel and child Alexander.

Lickerman Steps Down, Mobley Called CEO for Americas at Cushman & & Wakefield

Latest Moves Follow Previous Round of Executive Advertising, Reassignments in Early November

From left, inbound Cushman Americas CEO Shawn Mobley; Michelle Hay, worldwide head of personnels and John Forrester, global president.

Credit: Cushman & & Wakefield Cushman & & Wakefield announced today that Tod Lickerman, who was called CEO of the Americas in a significant realignment of the brokerage’s senior leadership just over a year ago, has actually stepped down and will be replaced by Shawn Mobley, who most recently functioned as president of the company’s East Department

The Chicago-based CRE services business also announced the promo of John Forrester to international president and Michelle Hay to worldwide head of human resources.

It’s the most recent of numerous changes to Cushman’s senior management team in the Americas, consisting of the project earlier this month of brokerage and capital markets CEO Joe Stettinius to the position of executive vice chairman, tactical investments, and handing international capital markets and investor services CEO Carlo Sant’Albano the added function of president supervising those functions in the Americas.

The relocations today and earlier in November, which Cushman explained in a declaration at the time as created “to elevate top skill and more carefully line up the company with customer requirements,” come as the third-largest worldwide CRE providers behind CBRE Group, Inc. (NYSE: CBG )and Jones Lang LaSalle (NYSE: JLL) is believed to be checking out a possible initial public offering.

In addition to leading Cushman’s eastern operations and Canada, Mobley also headed the company’s worldwide headquarters office in Chicago and also headed the business’s commercial platform in the Americas.

Forrester’s role as worldwide president will consist of oversight of the company’s four worldwide regions of the Americas, EMEA, APAC, and Greater China. Working carefully with Cushman CEO Brett White, he will be based in London. Forrester previously acted as president EMEA at DTZ prior to the merger with Cushman. He likewise acted as group president of DTZ Holdings PLC and led the formal sale of DTZ to UGL in 2011.

“We are a really different organization to the one we were at merger and as we have actually grown we have actually stayed entrepreneurial and action-orientated.” Forrester said in a declaration early today. “That is very important as the market is altering fast.”

Lickerman “has actually decided to leave the business to pursue other profession interests,” the business said today. “The firm is appreciative for his contribution to the business.”

Lickerman could not be grabbed comment. A post on his LinkedIn profile, which has given that been removed, read “After 4 excellent years helping to lead DTZ and Cushman & & Wakefield, I more than happy to state that I’m taking a well made break.”

Lickerman, who formerly worked as president for JLL’s Corporate Solutions group in the Americas, took control of as DTZ’s president in 2013 and ended up being worldwide CEO when DTZ merged with Cassidy Turley. He acted as global president of Cushman & & Wakefield, reporting to Chairman and CEO Brett White prior to being moved to Americas CEO last fall.

The previous Cushman statement in early November also consisted of an expansion and adjustment of management roles in Cushman’s western U.S. operations. Cushman promoted Executive Handling Director and Regional Handling Principal for Greater Los Angeles/Orange County Andrew McDonald to work as president of Cushman & & Wakefield’s West Area.

The company reassigned West Area President Mike Smith to the position of handling principal in San Diego and Mexico, where he will be accountable for recruiting and supporting talent and continuing to develop customer relationships. Prior to his role at Cushman, Smith was president of CBRE’s Northwest Area, managing operations of 17 business workplaces across five states.

In addition to Lickerman’s shift from the position of worldwide president to Americas CEO in late October 2016, Stettinius moved into the newly developed position of president, Americas brokerage and capital markets. Formerly, Stettinius had functioned as Americas CEO for DTZ prior to its merger with Cushman & & Wakefield and before that, led Cassidy Turley as CEO prior to its merger with DTZ in early 2015.

An investment group led by Fort Worth, TX-based TPG Group closed the $2 billion purchase of the 100-year-old Cushman in September 2015.

Sant’Albano will retain his role as president of international capital markets and investor services. Formerly, he has formerly held the positions of CEO and chairman of Cushman & & Wakefield, and CEO of Exor, SA, the Italian holding company for the Agnelli family, which sold the company to TPG in 2015. President of Capital Markets and Financier Services Noble Carpenter and Executive Managing Director of International Capital Markets Janice Stanton will continue reporting to Sant’Albano.

As president the West Area, McDonald, who formerly acted as executive handling director and local managing principal for Greater Los Angeles/Orange County, will lead all markets in Arizona, California, Colorado, Nevada, Oregon, Utah and Washington. McDonald started his property career in 1999 as executive assistant to John C. Cushman, III, who opened C&W’s very first Southern California workplaces in the 1960s.

Cushman also promoted Dan Broderick, who takes control of a regional handling principal in Northern California after previously heading Cushman’s seven workplaces in San Diego County and Phoenix. Broderick’s new markets include offices in San Francisco, Oakland, Walnut Creek, San Rafael, Sacramento, Burlingame, San Jose, Palo Alto, Pleasanton and Monterrey/Salinas. He formerly served in management functions at BRE Commercial and Eastdil Guaranteed.

Cushman & & Wakefield Purchases Out NorthMarq JVs in 4 US Markets

Global CRE Business Rolling Up 10 NorthMarq Workplaces; Likewise Acquires Toronto-Based Advisory Company

Cushman & Wakefield is buying out its joint-venture partner to take complete ownership of its top quality operations in Minneapolis, Seattle, Salt Lake City and Las Vegas from NorthMarq Cos., a private holding business owned by the Minneapolis-based Pohlad household.

In a different transaction revealed Tuesday, Chicago-based Cushman said that it has acquired Toronto-based 20 VIC Management Inc., one of Canada’s leading industrial realty advisory and management firms.

In the United States, Cushman will obtain 10 workplaces with 750 employees which in aggregate, manage nearly 50 million square feet of residential or commercial property. The acquisition will bring Cushman & & Wakefield NorthMarq (CWN) in Minnesota, one of the Twin Cities’ largest business brokerage and property management companies, completely under the corporate umbrella. Cushman will likewise purchase out NorthMarq’s interest in Cushman & & Wakefield Commerce (CWC) operations and workplaces in the Las Vegas, Salt Lake City and Seattle markets.

Cushman & & Wakefield did not divulge regards to the U.S. acquisitions but stated the sale, based on customary closing conditions, is anticipated to close within the next 3 weeks. Leadership groups in the four markets will stay in place, the company said in a declaration.

In the statement, Eduardo Padilla, CEO of NorthMarq Cos. (formerly Marquette Property Group), stated NorthMarq believes there’s “a logical and engaging reason to sell our operations to Cushman & & Wakefield at this time.”

“The industry is combining, with advanced customers needing a smooth platform, regardless of location or service,” Padilla said. NorthMarq Companies and NorthMarq Capital are not consisted of in the transaction.

Cushman & & Wakefield, among the biggest worldwide CRE services companies with revenues of $6 billion, is widely speculated in the industry to be exploring an initial public offering that could be introduced as early as the existing quarter. The company, marking its 100-year anniversary as a brand name, has 45,000 staff members in more than 70 countries with company operations that include leasing, asset services, capital markets, facility services, international occupier services, investment and possession management, task and advancement services, and appraisal and advisory services.

Jeff Eaton, president of Cushman & & Wakefield NorthMarq, that includes Cushman & & Wakefield NorthMarq (CWN) and Cushman & & Wakefield Commerce (CWC) operations, will expand his leadership role to include Cushman’s North Central Area, which includes oversight of Chicago, Minneapolis, and Detroit operations. Eaton will report to Cushman & & Wakefield East Region President Shawn Mobley.

Eaton has actually led NorthMarq through a number of organizational changes since ending up being president of NorthMarq Real Estate Solutions in 2008, including the 2009 acquisition of the property management division of Opus Corp.; the 2011 launch of NorthMarq’s joint venture with Cushman & & Wakefield, and the acquisition of CWC in 2013.

Cushman also did not release regards to its closed acquisition of 20 VIC Management, a boutique firm that recommends an exclusive group of pension funds, personal equity firms and high-net-worth financiers. The move considerably broadens Cushman’s Canadian existence, including its entry into the Canadian home management organisation, with 20 VIC handling more than 21 million square feet on behalf of a few of the country’s leading institutional and personal financiers.

George Buckles and Randy Scharf, who co-founded the business in 1995, will join Cushman as executive handling directors of possession services.

Mobley tells CoStar that the NorthMarq acquisitions will help Cushman support service lines and geographical coverage recognized as part of a “space analysis” following the business’s $2 billion acquisition by the group led by private-equity firm TPG from Italy’s Exor MEDSPA and merger with DTZ in September 2015.

“We did our research and found some white area and locations in which to grow, which ultimately led us to deals where we presently have alliance or JV relationships, but think we must maintain owned offices,” Mobley said.

Both the NorthMarq and 20 VIC transactions include a significant property management element, Mobley included.

The 20 VIC acquisitions is the very first venture into Canadian residential or commercial property management for Cushman. Like other large CRE service providers, Cushman intends to grow its global home and facilities management service to enhance more volatile sales and renting profits with a constant and long lasting source of recurring earnings.

“Home management holds up well throughout the realty cycle. It’s a strong performer during great times and bad,” Mobley kept in mind.

Cushman & & Wakefield Announces Corporate Acquisitions in 4 US Markets, Canada

Chicago-Based Global CRE Company to Buy Out 10 NorthMarq Workplaces; Likewise Obtains Toronto-Based Advisory Company

Cushman & Wakefield today revealed it has actually accepted purchase out joint-venture operations in Minneapolis, Seattle, Salt Lake City and Las Vegas from NorthMarq Companies, a personal holding business owned by the Minneapolis-based Pohlad household.

In a different transaction announced Tuesday, Chicago-based Cushman said that it has acquired Toronto-based 20 VIC Management Inc., among Canada’s leading industrial real estate advisory and management companies.

In the United States, Cushman will acquire 10 offices with 750 staff members which in aggregate, manage nearly 50 million square feet of home. The acquisition will bring Cushman & & Wakefield NorthMarq (CWN) in Minnesota, one of the Twin Cities’ largest industrial brokerage and property management business, fully under the business umbrella. Cushman will also buy out NorthMarq’s interest in Cushman & & Wakefield Commerce (CWC) operations and workplaces in the Las Vegas, Salt Lake City and Seattle markets.

Cushman & & Wakefield did not reveal regards to the United States acquisitions however said the sale, based on customary closing conditions, is expected to close within the next 3 weeks. Leadership teams in the four markets will remain in location, the business stated in a declaration.

In the declaration, Eduardo Padilla, CEO of NorthMarq Cos. (previously Marquette Property Group), stated NorthMarq believes there’s “a sensible and compelling reason to offer our operations to Cushman & & Wakefield at this time.”

“The industry is consolidating, with advanced clients needing a seamless platform, irrespective of location or service,” Padilla said. NorthMarq Companies and NorthMarq Capital are not included in the transaction.

Cushman & & Wakefield, amongst the biggest worldwide CRE services companies with earnings of $6 billion, is extensively hypothesized in the market to be checking out a going public that might be launched as early as the present quarter. The company, marking its 100-year anniversary as a brand, has 45,000 workers in more than 70 countries with service operations that consist of leasing, possession services, capital markets, center services, international occupier services, investment and asset management, project and development services, and evaluation and advisory services.

Jeff Eaton, president of Cushman & & Wakefield NorthMarq, which includes Cushman & & Wakefield NorthMarq (CWN) and Cushman & & Wakefield Commerce (CWC) operations, will expand his leadership function to include Cushman’s North Central Area, which includes oversight of Chicago, Minneapolis, and Detroit operations. Eaton will report to Cushman & & Wakefield East Region President Shawn Mobley.

Eaton has actually led NorthMarq through several organizational modifications considering that ending up being president of NorthMarq Realty Services in 2008, including the 2009 acquisition of the home management division of Opus Corp.; the 2011 launch of NorthMarq’s joint endeavor with Cushman & & Wakefield, and the acquisition of CWC in 2013.

Cushman also did not launch terms of its closed acquisition of 20 VIC Management, a boutique firm that advises an exclusive group of pension funds, private equity firms and high-net-worth investors. The move substantially broadens Cushman’s Canadian existence, including its entry into the Canadian home management business, with 20 VIC handling more than 21 million square feet on behalf of a few of the nation’s leading institutional and private financiers.

George Buckles and Randy Scharf, who co-founded the business in 1995, will sign up with Cushman as executive managing directors of property services.

Mobley tells CoStar that the NorthMarq acquisitions will assist Cushman fortify service lines and geographic coverage determined as part of a “space analysis” following the business’s $2 billion acquisition by the group led by private-equity company TPG from Italy’s Exor SpA and merger with DTZ in September 2015.

“We did our homework and discovered some white space and locations where to grow, which eventually led us to transactions where we presently have alliance or JV relationships, however think we need to maintain owned workplaces,” Mobley stated.

Both the NorthMarq and 20 VIC deals consist of a considerable residential or commercial property management part, Mobley included.

The 20 VIC acquisitions is the first foray into Canadian residential or commercial property management for Cushman. Like other large CRE provider, Cushman intends to grow its worldwide residential or commercial property and centers management business to enhance more volatile sales and renting profits with a constant and resilient source of recurring earnings.

“Residential or commercial property management holds up well throughout the real estate cycle. It’s a strong entertainer during good times and bad,” Mobley kept in mind.

Merged Cushman & & Wakefield/DTZ Taps Both Companies for U.S., Global Leadership

Staked by TPG’s Personal Equity Capital, Cushman Focused On Deploying Capital to Support Worldwide Development

New Cushman & & Wakefield Global President Tod Lickerman has actually spent a good portion of the last 4 months meeting with leading C&W and DTZ markets overseas and around the united state, tasked with assisting craft a management team and integration prepare for what is now among the three largest CRE companies.

“It’s a great balance between the very best of DTZ and the best of Cushman & & Wakefield, “Lickerman, who formerly served in the exact same function for DTZ, tells CoStar News. “In every market, we’ve been fortunate enough to land the very best from each firm, and developed a combined management group that takes us forward.”

DTZ and Cushman & & Wakefield closed their merger early Wednesday, creating a new company with a combined overall of $5 billion in earnings and 43,000 workers, with more than 4.3 billion square feet under management and $191 billion in deal value. A consortium headed by DTZ and backed by TGP Capital obtained the three-quarters stake in Cushman owned by Exor HEALTH CLUB, Italian holding business for the Agnelli household, for a reported $2 billion. Cushman’s new owners also include PAG, among the largest Asia-based alternative financial investment managers; and the Ontario Educators’ Pension (OTTP), among Canada’s largest pension.

The combined company’s U.S. operations will be headed by Joe Stettinius, president, Americas, who previously served because function for DTZ. Previous Cushman President Edward Forst, who was anticipated to step down, is no longer with the company, officials validated.

Other senior executives from the pre-merger Cushman & & Wakefield consist of Ron Lo Russo, president of the Tri-State Region who will continue in that role and work as New York City regional market leader; and Shawn Mobley, who has served as head of Cushman’s Southeast and Central market departments and will now take control of as president of the Eastern Region and function as market lead for the North Central and Southeast areas along with lead the Chicago market.

DTZ executives getting C&W management positions consist of Roberta Liss, who will function as Mid-Atlantic Region and Washington, D.C. City market leader; Mike Kamm, who left Cushman to become president of Cassidy Turley in 2013 and signed up with DTZ previously this year when it got CT, and now goes back to Cushman as Northwest Area market leader.

“We’ve been working on the combination planning for months, so we’ve got an excellent running start,” Lickerman stated, who offered color on the leadership team’s conferences with significant customers, potential customers and leading producers for the companies in each market. “They’re remarkably compatible companies.”

Lickerman, who was previously CEO for Jones Lang LaSalle’s Corporate Solutions group for the Americas before taking over as DTZ’s new chief executive in 2013, also said DTZ and Cushman & & Wakefield are extremely complementary organizations. For instance, DTZ had no appraisals business in the Americas before joining with Cushman. DTZ had a strong presence in Asia, while Cushman has long taken advantage of its base of operations in New york city City. After getting Massey Knakal earlier this year, the company stated it’s now the top CRE company in the Big Apple in regards to profits and headcount, surpassing competing CBRE.

“The even-better news is, there’s very little overlap in market-facing positions,” Lickerman said. “We have good market position, but we do not have saturation or anything like it,” stated Lickerman, commenting on the business’s drive to maintain essential manufacturers through the U.S. and globally. “Our retention stats are substantially above the industry norms because the merger was announced.”

“We’re doing the ideal things, talking to individuals and getting them comfortable with the platform,” he stated. “We’re getting an extraordinary quantity of interest from experts calling as and asking to join. People from both huge shops and small companies see what we’re doing and the momentum we have actually attained.”

C&W Global Regions Management

Joe Stettinius, Chief Executive, Americas;
John Forrester, President, EMEA (previously same position, DTZ);
Edward Cheung Chairman APAC Board; Chief Executive, Greater China (formerly chief executive, North Asia, DTZ);
Stuart Roberts, President, APAC (previously chief executive, Asia Pacific, DTZ). Americas Regional Presidents

Ron Lo Russo, Tri-State Region President/NY City Region Market Leader; (previously president, Tri-State Area, C&W);
Shawn Mobley, East Area President/North Central and Southeast Region Market Leader/Chicago Market; (formerly president, Southeast and Central market departments, C&W);
Celina Antunes, South America Area President (previously South America CEO, C&W);
Mike Smith, West Region President/Texas Region Market Leader (previously president, West Region, DTZ). U.S./ Mexico Regional Market Leaders

Luis Alvarado, Northeast Region Market Leader/Boston Market Leader; (previously senior handling director, C&W);
Dan Broderick, Southwest Area Market Leader/San Diego Market Leader; (formerly senior handling director, San Diego Region, DTZ)
Jim Fagan, Connecticut Area Market Leader/Stamford and Westchester Market Leader (formerly senior managing director, Greater NY location, C&W)
Mike Kamm, Northwest Area Market Leader (previously president, West Area, DTZ);
Victor Lachica, Mexico Area Market Leader (formerly president/CEO, C&W);
Roberta Liss, Mid-Atlantic Area Market Leader/DC City Market Leader (previously East Area president, DTZ);
Dean Mueller, South Central Region Market Leader (formerly president, Central Region, DTZ).

TPG-Backed DTZ Finishes $2 Billion Merger With Cushman & & Wakefield

Joe Stettinius, Team of 5 Regional Presidents to Lead Freshly Top quality C&W In Americas

THE NEW RED: Cushman & Wakefield rolled out a new logo following its combination with DTZ.
THE NEW RED: Cushman & & Wakefield presented a brand-new logo design following its mix with DTZ.

DTZ and Cushman & & Wakefield closed their merger early Wednesday, creating among the world’s largest commercial real estate services companies with a combined total of $5 billion in income and 43,000 staff members.

With the deal, Exor MEDSPA, the Agnelli family’s Italian holding business, sold its bulk stake in Cushman & & Wakefield acquired in March 2007 to a financier group led by Fort Worth, TX-private equity company TPG Capital, co-founded by billionaire investor David Bonderman, for $2.04 billion, according to Exor’s statement of the handle Might.

Cushman’s brand-new owners also include PAG, among the largest Asia-based alternative financial investment managers; and the Ontario Educators’ Pension Plan (OTTP), one of Canada’s biggest pension.

Running under the Cushman & & Wakefield brand with a brand-new logo, the combined business– with more than 4.3 billion square feet under management and $191 billion in transaction value– will be headed worldwide by Chairman and CEO Brett White and Global President Tod Lickerman.

The combined firm’s U.S. operations will be led by Joe Stettinius, president, Americas.

The next tier of Cushman management in the Americas, which has actually been the subject of much discussion and speculation in the united state, includes 4 region presidents that report straight to Stettinius. They are Ron Lo Russo, Tri-State Area president/NY City Area market lead; Shawn Mobley, East Area president/North Central and Southeast Region market lead and Chicago market lead; Celina Antunes, South America Region president; and Mike Smith, West Area president/Texas Region market lead.

Area Market Leads consist of Luis Alvarado, Northeast Area and Boston market; Dan Broderick, Southwest Region and San Diego market; Jim Fagan, Connecticut region, Stamford and Westchester markets; Mike Kamm, Northwest Area; Victor Lachica, Mexico Region; Roberta Liss, Mid-Atlantic Area and DC Metro Market and Dean Mueller, South Central Area.

Not listed as one of C&W’s worldwide or regional leaders in the statement is Edward C. Forst, who took over in December 2013 as president and CEO of Cushman and was extensively anticipated to step down when the merger was finished.

The closing comes quickly after the regulatory approval of the deal by the European Commission, which works as the governing body of the European Union, during its Aug. 28 meeting in Brussels, Belgium.

“We have the ideal platform and the right individuals sharing our client-centric culture and a strong desire to boldy grow our company in the Americas,” Stettinius stated in a statement.

“Both heritage companies had actually been aggressively growing their respective platforms and growing their reach into the market with new acquisitions and skill,” said previous CBRE chief executive White, who described the combination as “a game-changing occasion in business realty.”

The latest round of consolidation in the CRE services market began in 2013 when TPG consented to acquire U.S.-based Cassidy Turley and combine it with its formerly acquisition target, DTZ, in a bid to compete as a worldwide CRE services company.

With the merger, Cushman & & Wakefield operates in more than 60 countries all over the world and in every significant worldwide market and service line. C&W’s services include firm leasing, property services, capital markets, international occupier services, facility services, branded as C&W Solutions; financial investment management, branded as DTZ Investors; job and advancement services, occupant representation, and valuation & & advisory.

TPG-Backed DTZ Finishes Merger With Cushman & & Wakefield

Joe Stettinius, Team of Five Regional Presidents to Lead Freshly Top quality C&W In Americas

DTZ and Cushman & & Wakefield closed their merger early Wednesday, producing one of the world’s biggest commercial property services companies with a combined overall of $5 billion in income and 43,000 employees.

With the transaction, Exor HEALTH SPA, the Agnelli household’s Italian holding company, sells its 75 % stake in Cushman acquired in March 2007 to a financier group led by Fort Worth, TX-private equity firm TPG, co-founded by billionaire investor David Bonderman, for $2.04 billion, according to Exor’s statement of the deal in Might.

Cushman’s new owners likewise include PAG, among the largest Asia-based alternative financial investment supervisors; and the Ontario Educators’ Pension Plan (OTTP), among Canada’s largest pension.

Running under the Cushman & & Wakefield brand with a new logo, the combined company– with more than 4.3 billion square feet under management and $191 billion in deal value– will be led in the united state by Joe Stettinius, chief executive, Americas.

The next tier of Cushman leadership in the Americas, which has been the subject of much discussion and speculation in the united state, consists of four region presidents that report directly to Stettinius. They are Ron Lo Russo, Tri-State Region president/NY City Region market lead; Shawn Mobley, East Area president/North Central and Southeast Area market lead and Chicago market lead; Celina Antunes, South America Area president; and Mike Smith, West Region president/Texas Region market lead.

Region Market Leads consist of Luis Alvarado, Northeast Region and Boston market; Dan Broderick, Southwest Area and San Diego market; Jim Fagan, Connecticut region, Stamford and Westchester markets; Mike Kamm, Northwest Area; Victor Lachica, Mexico Region; Roberta Liss, Mid-Atlantic Region and DC Metro Market and Dean Mueller, South Central Region.

The closing comes soon after the regulatory approval of the deal by the European Commission, which serves as the governing body of the European Union, during its Aug. 28 meeting in Brussels, Belgium.

“We have the best platform and the best individuals sharing our client-centric culture and a strong desire to boldy grow our business in the Americas,” Stettinius stated in a statement.

As anticipated, Cushman will be headed globally by Chairman and CEO Brett White and Global President Tod Lickerman.

“Both legacy firms had actually been boldy growing their particular platforms and growing their reach into the marketplace with new acquisitions and skill,” stated former CBRE chief executive White, who explained the combination as “a game-changing event in commercial real estate.”

With the merger, Cushman & & Wakefield runs in more than 60 countries worldwide and in every significant global market and service line. C&W’s services consist of agency leasing, possession services, capital markets, global occupier services, facility services, branded as C&W Solutions; investment management, branded as DTZ Investors; task and advancement services, tenant representation, and valuation & & advisory.

A Look at How DTZ and Cushman & & Wakefield ' s U.S. Market Protection Stacks Up

Combination Factors to consider Loom Large in Pending Merger and Include More Than Just Headcount in Markets Where DTZ, C&W and Former Cassidy Turley Share an Existence

Backed by global investment giant TPG Capital, DTZ’s plan to buy Cushman & & Wakefield for a reported $2 billion is the latest and by far largest in a series of top-level moves ushering in significant changes throughout the united state industrial real estate services landscape.

Offered the sheer size and scale of such a significant merger, it is only to be expected that some dislocation will happen over the next couple of months for brokers and other staff in markets where both Cushman and DTZ already have huge footprints.

However, based on a recent snapshot of workplaces and personnel for the 2 law firms, the number of significant U.S. markets in which Cushman and DTZ both have a major existence is remarkably restricted– just 4 of the leading 15– Boston, Chicago, Dallas and the San Francisco Bay Location– which would appear to additional boost the case for the mix.

“Anytime you have a big or even mid-sized merger, there’s going to be overlap, and the Cushman & & Wakefield/DTZ [combination] is probably going to be tougher in the cities where Cassidy Turley had an excellent existence,” stated Brandon Dobell, an expert with William Blair & & Associates who follows the office property services market.

“The law firms are fortunate because the U.S markets for leasing and sales activity is quite strong, as that probably allows a bit more freedom around workers options,” Dobell said. “But where you have customer overlap– for example, a Cassidy Turley broker and a Cushman broker managing the exact same customer in the same city– there is likely going to be some discomfort.”

Cushman & & Wakefield maintains a large numbers advantage in markets like Atlanta, where it utilizes about 350 brokers and personnel versus less than 70 for DTZ/Cassidy Turley, relative late-comers to the marketplace, according to a recent study of workplaces and personnel listed online sites of the firms in 15 huge U.S. markets.

Other dominant Cushman markets consist of Minneapolis, New Jersey and New york city City, C&W’s flagship market, which has grown to an estimated 540 professional workers following Cushman’s current acquisition of Massey Knakal Realty Solutions, inned comparison to about 150 for DTZ. In addition to its world headquarters at 1290 Avenue of the Americas, Cushman operates offices at 275 Madison Ave., 100 Wall St. downtown, 205 Montague St. in Brooklyn, and a workplace in Queens, in addition to its JRT Realty affiliate at 780 Third Opportunity.

In Chicago, Cushman has about 160 specialists, which increased following its acquisition of J.F. McKinney & & Associates soon prior to the merger with DTZ was announced. DTZ lists about 70 market-based staff members (not including senior business management), at its three Chicagoland workplaces, including its worldwide headquarters structure at 77 West Wacker Drive, an office at 3440 S. Dearborn St. and a workplace in suburban Oak Brook.

That being said, DTZ holds its own edge in specific U.S. markets, thanks in big part to the acquisition of Cassidy Turley. DTZ controls in St. Louis, a former headquarters area for Cassidy Turley that serves much of the Midwest and has more than 800 staff members in 7 offices throughout the market as DTZ’s largest operational center.

Likewise in Washington, D.C., DTZ employs about 450, compared with less than 100 for Cushman & & Wakefield. DTZ keeps more than 260 mainly former Cassidy Turley personnel in its Northern California operations– the San Francisco Bay Area, Silicon Valley and Sacramento, compared to 175 for C&W. In Phoenix, DTZ employs about 155 brokers and other expert staff, while C&W utilizes less than 70, according to the web sites.

Moody’s Investors Service weighed in on the recommended merger last month, singling out integration risks and increased monetary leverage in modifying DMZ’s credit outlook from steady to unfavorable.

Nevertheless, in spite of the apparent combination obstacles, Moody’s kept in mind several positive elements to the merger as well. DTZ will certainly enhance its size and scale throughout the extremely fragmented CRE services market, and its annualized incomes will enhance to more than $5 billion from about $3 billion currently. The ratings company also noted DTZ’s U.S. existence was previously thought about the weakest of its three worldwide regions, even with the addition of Cassidy Turley, which had a strong but decidedly regional company.

“The 2 law firms also have complementary strengths throughout their service platforms and locations, placing DTZ for potential market share gains,” Moody’s analyst said.

Likewise, while it’s well-understood that the vice presidents or handling directors in charge are usually compensated based on growth and will therefore be expected to keep the best rainmakers and let the weakest ones go, Dobell stated more than headcount and production comes into play in these cases.

Sales require contraction or attrition might not be as unpleasant in markets where one company has a dominant and complimentary existence in various home types or service lines, such as leasing, sales or loan origination, the William Blair expert said.

A main currency for any realty broker is individual relationships, and overlap among the individual contacts of DTZ and C&W brokers may invite dispute within the ranks of the brand-new company, according to Andrew Maguire, senior realty attorney and shareholder with Radnor, PA-based McCausland Keen & & Buckman’s property group. Nevertheless, the Cushman/DTZ transaction is not simply an issue of which company holds a numbers advantage in a particular market.

“Sector expertise is so typical within the biggest brokerages that there may well be chance for a complementary workplace among different specialized groups such as workplace, commercial, retail and others, post-merger,” Maguire said.

It will be intriguing to see whether the brand-new business continues to develop such supplementary services as threat management and possession management beyond the core brokerage and occupant representation companies, once the consolidation is full, Maguire stated.

In any case, adds Dobell, time will likely bring more changes following the existing upcycle, which he stated has rather masked the effects of the ongoing consolidation trend in CRE services.

“It’s okay to be stuck in the middle market in the united state now since of how great the market environment is, but when development slows or the number of deals reduces, which will ultimately occur, the people in the middle are in huge difficulty with corporates, huge owners and big occupiers,” Dobell said. “Those that write the checks will certainly continue to concentrate on a little number of vendors and a decline will magnify that, as it has in a lot of other expert services sectors.”