CBRE to buy Telford Homes for £267.4m
CBRE has agreed terms to buy Telford Homes for around £267.4m, as part of a bid to expand its UK urban rental housing capabilities.
The all-cash acquisition for 350p per share reflects a premium of about 11.1% to Telford’s closing price yesterday (2 July).
If Telford’s shareholders accept the offer, it will become a part of CBRE’s Trammell Crow Company, while Jon Di-Stefano, chief executive of Telford, will continue to lead the listed business.
CBRE has agreed terms to buy Telford Homes for around £267.4m, as part of a bid to expand its UK urban rental housing capabilities.
The all-cash acquisition for 350p per share reflects a premium of about 11.1% to Telford’s closing price yesterday (2 July).
If Telford’s shareholders accept the offer, it will become a part of CBRE’s Trammell Crow Company, while Jon Di-Stefano, chief executive of Telford, will continue to lead the listed business.
Bob Sulentic, president and chief executive of CBRE, said: “Telford Homes gives us a compelling opportunity to build on the success of Trammell Crow Company.
“The UK is in the early stages of a secular shift toward institutionally owned urban rental housing, similar to what we have seen in the US over the last two decades.
“Telford Homes is well positioned to lead this trend, and its more than 300 talented professionals operating in London are a great addition to our company.”
Di-Stefano said: “Being part of Trammell Crow Company will allow Telford Homes to enhance its growth in the build to rent/multifamily market in London.
“Our management team have found that Trammell Crow Company is aligned with both our culture and our current strategy and its platform will give Telford Homes access to greater resources, improved technology and wide-ranging expertise.”
Andrew Wiseman, chairman of Telford Homes, said: “The board believes that the offer from CBRE represents fair value for shareholders in light of Telford Homes’ market positioning, the current operating environment and the underlying value of Telford Homes’ site portfolio and pipeline.
“The board remains confident in the long-term prospects of the business, however the board also recognises the risks posed by the political and macro-economic environment, as well as the already stated impact on the group’s short- and medium-term profitability from the implementation of its new build to rent strategy, which is lower margin in nature.”
To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette
