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UPDATE 1-Jones Lang LaSalle buys S.African property firm
March 31, 2011 / 10:45 AM / 6 years ago

UPDATE 1-Jones Lang LaSalle buys S.African property firm

* Deal is LaSalle’s first foray into sub-Saharan Africa

* Financial details not disclosed (Adds executive comments, details, background)

By Gugulakhe Lourie

JOHANNESBURG, March 31 (Reuters) - Jones Lang LaSalle (JLL.N), one of the world’s largest real estate services companies, is buying a South African rival for an undisclosed amount, its first step into the fast-growing continent.

The U.S. real estate group said on Thursday that the acquisition of unlisted Bradford McCormack & Associates (BMA) provided a springboard for further expansion in South Africa and the region.

“The deal opens up accelerated business growth opportunities for both firms across South Africa and its neighbouring countries,” the company said in a statement.

BMA’s local clients include South Africa’s biggest bank, ABSA ABSJ.J, global confectionery giant Nestle NESN.VX, the Johannesburg Stock Exchange (JSEJ.J) and several government departments.

Jones Lang LaSalle is the third major U.S.-based company in recent months to have shown interest in sub-Saharan Africa’s fast-growing markets.

Last week, Washington D.C.-based private equity group Carlyle [CYL.UL] said it planned to open offices in Johannesburg and Lagos and start investing in capital growth ventures and buyouts in the region. [ID:nLDE72N05U]

U.S. retailer Wal-Mart Stores (WMT.N) is in the middle of buying a controlling stake in South African retailer Massmart (MSMJ.J) for $2.3 billion, though it is having problems convincing competition authorities. [ID:nLDE72R1OO]

Jones Lang LaSalle will compete in South Africa with Growthpoint Properties (GRTJ.J), the country’s largest listed property firm, and Redefine Properties (RDFJ.J).

Earlier this month, a survey by property consultant DTZ DTZ.L found the amount of new capital available for investment in global real estate was $329 billion, up 17 percent from a mid-2010 projection. [ID:nLDE728294]

Capital earmarked for direct investment in the Americas rose 14 percent to $111 billion, while in Europe, the Middle East and Africa (EMEA) the pot was up just 2 percent to $114 billion. (Reporting by Gugulakhe Lourie, Editing by Ed Cropley and Will Waterman)

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