Savills has agreed a $1.1bn (£870m) deal to acquire global real estate investment bank Eastdil Secured in one of the largest transactions in the advisory firm’s history and a move designed to strengthen its position in commercial property capital markets.
The FTSE-listed property adviser has signed a definitive agreement to buy all of Eastdil Secured’s equity for an enterprise value of $1.1125bn, with completion expected once regulatory approvals and closing conditions are satisfied.
The acquisition will significantly expand Savills’ capabilities in investment banking, debt advisory and large-scale commercial transactions, giving the combined group a stronger presence in the US and broader global reach across prime real estate markets.
Eastdil Secured, founded in New York in 1967, is regarded as one of the world’s leading real estate investment banks, advising on mergers, acquisitions, debt placement and major property sales across the US, Europe, the Middle East and Asia. The firm operates from 20 offices worldwide, including London, New York, Dubai, Dublin, Frankfurt, Paris and Hong Kong.
HIGH-VALUE COMMERCIAL
Savills said the deal will create one of the world’s largest advisory platforms for high-value commercial property transactions, with the combined business expected to rank second globally for deals above $100m based on recent MSCI data.
Eastdil Secured will continue to operate under its existing structure within the Savills group and will act as its real estate investment banking arm.
SIGNIFICANT STEP
Simon Shaw (main picture, left), Group Chief Executive of Savills, says: “Eastdil Secured is an organisation we have worked with and admired for many years. It has a complementary geographical footprint and similar culture to our own.
“This acquisition is a significant step forward for both of us, bringing to the global investment community a much-needed choice of leading advisory partner to deliver a comprehensive suite of investment banking, strategic, financial, development, leasing and other ‘boots on the ground’ property solutions.”
NEW CHAPTER
Roy H. March (main picture, right), Executive Chairman of Eastdil Secured, says the deal marks “the beginning of a new chapter” for the business.
He adds: “This transaction will accelerate our growth, create opportunities for our team, and significantly enhance our ability to provide best-in-class real estate investment banking services for our valued clients globally.”
