Savills group CEO Simon Shaw (left) and Eastdil Secured CEO, D. Michael Von Konyenburg. (Photo: Savills)
London-listed real estate advisory firm Savills plc has signed a definitive agreement to acquire all of the equity of Eastdil Secured, a global real estate investment bank, for an enterprise value of US$1.1125 billion (about $1.42 billion).
Eastdil Secured offers advice on mergers and acquisitions, continuation vehicles or joint ventures, sales, debt placement, structured credit, and loan sales to investors around the world.
Based in New York, Santa Monica and London, the firm also has 20 offices across the US and internationally in Dubai, Dublin, Frankfurt, Milan, Paris and Hong Kong.
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In a March 12 announcement, Savills said this is one of the largest deals in its history. The acquisition will build a global capital markets powerhouse, significantly expand Savills’ coverage in the US while providing Eastdil Secured with a platform for growth in Apac, and enable the businesses to service the full life cycle of real estate ownership.
Savills group CEO, Simon Shaw, said the global investment community will be able to access a comprehensive suite of investment banking, strategic, financial, development, leasing, and other “boots on the ground” popular solutions.
Eastdil Secured will continue to operate its existing business model within the Savills group, as the group’s real estate investment bank from completion of the deal.
In connection with the transaction, Eastdil Secured also announced executive leadership appointments to position the business for continued growth, effective immediately:
March said Eastdil Secured will continue to provide clients with capital markets and commercial real estate expertise, “now with more resources as part of a larger organisation with complementary geographic reach and advisory capabilities”.
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Founded in 1967 in New York, Eastdil Realty pioneered an investment banking approach to real estate advisory. It merged with real estate investment banking firm Secured Capital in 2006 to create Eastdil Secured.
In 2019, Eastdil Secured underwent a management-led recapitalisation in partnership with Guggenheim, Temasek and Wells Fargo.
Savills’ acquisition of Eastdil Secured is scheduled to complete in due course following satisfaction of customary regulatory and closing conditions.
The Eastdil Secured leadership team and senior employees will become shareholders in Savills through receiving consideration shares in exchange for their existing interests in Eastdil Secured.
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