American property group CBRE has completed the acquisition of Telford Homes in a £267m deal.
The purchase will allow the US group to move into the “fast-growing” build-to-rent sector of the London market specifically, according to a statement from the firm.
Telford Homes will continue to operate as a standalone business and CEO Jon Di-Stefano will remain in his leadership role, but the housebuilder will be under the umbrella of the Trammell Crow company, CBRE’s real estate development subsidiary.
Mr Di-Stefano said the acquisition of Telford Homes was a “natural fit” due to the alignment of the two groups’ business models, people and culture.
He added: “We now have enhanced capabilities to raise capital, acquire the nest sites and deliver high-quality properties that meet rising demand for rental housing.”
CBRE president and CEO Bob Sulentic said Telford Homes would afford the company greater opportunities.
He said: “The UK is in the early stages of a secular shift toward institutionally owned urban rental housing, and Telford Homes’ talented team positions us to lead this trend.”
A statement from CRBE yesterday highlighted that the move would take advantage of the “changing attitudes about renting versus ownership” alongside greater affordability relative to for-sale housing and limited supply.
Mr Sulentic has previously signalled that CBRE wanted to move the business into the UK because the shift toward “institutionally owned urban rental housing” there was similar to that experienced in the US in the past two decades.
The US group confirmed yesterday that Telford Homes’ financial performance would be reported in CBRE’s Real Estate Investment accounts.
CBRE’s most recent accounts, dated up to the year ending 31 December 2018, show that the group made a record turnover of £17.4bn ($21.3bn) and a profit of £1.6bn ($2bn), up £209m ($257m) from £1.4bn ($1.7bn) the previous year.
As of 30 June this year, Trammell Crow had £8.7bn ($10.6bn) of projects in process and £2bn ($2.5bn) in its pipeline.
In its accounts dated to 31 March 2019, Telford Homes made a £40.1m pre-tax profit and a turnover of £354.3m.
Telford Homes signed a deal in June to deliver 894 new rental apartments in Nine Elms with developers Henderson Park and Greystar.
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