Profile: CBRE Group Inc (CBG)
6 Dec 2013
CBRE Group, Inc., incorporated on February 20, 2001, is a holding company that conducts all of its operations through its indirect subsidiaries. The Company is a commercial real estate services firm. The Company offers a range of services to occupiers, owners, lenders and investors in office, retail, industrial, multi-family and other types of commercial real estate. As of December 31, 2011, it operated approximately 300 offices worldwide, providing commercial real estate services under the CBRE brand name, investment management services under the CBRE Global Investors brand name and development services under the Trammell Crow brand name. CBRE Services, Inc., its direct wholly owned subsidiary, is also a holding company and is the primary obligor or issuer with respect to most of its long-term indebtedness. The Company operates in five segments: Americas, Europe, Middle East and Africa (EMEA), Asia Pacific, Global Investment Management and Development Services. On July 1, 2011, it completed the acquisition of Clarion Real Estate Securities (CRES). On October 3, 2011, the Company acquired REIM Asia. On October 31, 2011, the Company acquired REIM Europe. In June 2012, the Company acquired its affiliate company in Turkey. In September 2012, the Company acquired CB Richard Ellis (Vietnam) Co., Ltd. In November 2012, the Company acquired EA Shaw. In January 2013, the Company acquired he commercial real estate services businesses of Atlanta-based Resource Real Estate Partners, LLC and TPA Realty Services, LLC. In June 2013, the Company acquired SOGESMAINT-CBRE. Effective September 2, 2013, CBRE Group Inc acquired an undisclosed majority interest in Basale Sverige AB, from Basale Gruppen AS, a unit of Oslo Bolig og Sparelag. In September 2013, CBRE Group Inc acquired Fameco. In November 2013, CBRE Group Inc acquired Alan Selby & Partners LLP.
The Americas segment consisted of operations throughout the United States and Canada, as well as markets in Latin America. Its operations are wholly owned, but also include independent affiliated offices, which license the use of the CBRE and CB Richard Ellis names in their local markets in return for payments of annual royalty fees to the Company and an agreement to cross-refer business between the Company and the affiliate. Its advisory services businesses offer occupier/tenant and investor/owner services that meet the full spectrum of marketplace needs, including real estate services, capital markets and valuation. Within advisory services, its service lines are Real Estate Services, Capital Markets and Valuation.
The Company provides strategic advice and execution to owners, investors and occupiers of real estate in connection with leasing, disposition and acquisition of property. It generates revenue from existing United States real estate sales and leasing clients in 2011. This includes referrals from its contractual fee-for-services businesses, such as facilities and property management, mortgage loan servicing and investment management provided by CBRE Global Investors. The Company offers clients integrated investment sales and debt/equity financing services under the CBRE Capital Markets brand. The Company provides valuation services that include market value appraisals, litigation support, discounted cash flow analyses and feasibility and fairness opinions.
Outsourcing commercial real estate services is a long-term trend in its industry, with corporations, institutions, public sector entities, health care providers and others. Its outsourcing services primarily include two business lines that seek to capitalize on this trend: corporate services and asset services. The Company provides a suite of services to corporate users of real estate, including transaction management, project management, facilities management, strategic consulting, portfolio management and other services. Its clients are global corporations, health care providers and public sector entities with geographically-diverse real estate portfolios. Project management services are typically provided on a portfolio-wide or programmatic basis. Facilities management involves the day-to-day management of client-occupied space and includes headquarter buildings, regional offices, administrative offices and manufacturing and distribution facilities. The Company provides property management, construction management, marketing, leasing, accounting and financial services on a contractual basis for income-producing office, industrial and retail properties owned by local, regional and institutional investors. It provides these services through a network of real estate experts in markets throughout the United States.
Europe, Middle East and Africa (EMEA)
The Company’s Europe, Middle East and Africa, segment, operates in 44 countries with operations primarily conducted through a number of indirect wholly owned subsidiaries. The operations are located in France, Germany, Italy, the Netherlands, Russia, Spain and the United Kingdom. Its operations in these countries generally provide a range of services to the commercial property sector. Additionally, it provides some residential property services, primarily in France, Spain and the United Kingdom. Within EMEA, its services are organized along the same lines as in the Americas, including brokerage, investment properties, corporate services, valuation/appraisal services, asset management services and facilities management, among others.
In France, it has operations in Aix in Provence, Bagnolet, Bordeaux, Lille, Lyon, Marseille, Montreuil, Montrouge, Neuilly Sur Seine, Saint Denis and Toulouse. Its German operations are located in Berlin, Cologne, Dusseldorf, Frankfurt, Hamburg, Munich and Stuttgart. Its presence in Italy includes operations in Milan, Modena, Rome and Turin. Its operations in the Netherlands are located in Amsterdam, Almere, the Hague, Hoofddorp and Rotterdam. Itsoperations in Russia consist of an office in Moscow. In Spain, it provides full-service coverage through its offices in Barcelona, Madrid, Marbella, Palma de Mallorca and Valencia. The Company is a commercial real estate services company in the United Kingdom. In London, it provides a range of commercial property real estate services to investment and corporate clients.
The Company has affiliated offices that provide commercial real estate services under its brand name in several countries throughout Europe, the Middle East and Africa. Its agreements with these independent offices include licenses to use the CBRE and CB Richard Ellis names in the relevant territory in return for payments of annual royalty fees to the Company. In addition, these agreements also include business cross-referral arrangements between the Company and its affiliates.
The Company’s Asia Pacific segment operates in 13 countries with operations primarily conducted through a number of indirect wholly owned subsidiaries. It is a provider a range of real estate services to corporations throughout the region, similar to the range of services provided by its Americas and EMEA segments. Its principal operations in Asia are located in China, Hong Kong, India, Japan, Singapore and South Korea. In addition, it has agreements with affiliate offices in the Philippines, Thailand, Vietnam, Cambodia and Malaysia that generate royalty fees and support cross-referral arrangements similar to its EMEA segment.
Global Investment Management
The Company’s operations in Global Investment Management segment are conducted through its indirect wholly owned subsidiary CBRE Global Investors, LLC and its global affiliates, which it also refers to as CBRE Global Investors. CBRE Global Investors provides investment management services to pension funds, insurance companies, sovereign wealth funds, foundations, endowments and other institutional investors seeking to generate returns and diversification through investment in real estate. It sponsors investment programs that span the risk/return spectrum across three continents: North America, Europe and Asia. CBRE Global Investors’ investment programs are organized into four primary categories, which include direct real estate investments through separate accounts and sponsored equity and debt funds, as well as indirect real estate investments through listed securities and multi manager funds of funds. As of December 31, 2011, its portfolio of consolidated real estate held for investment consisted of one industrial property and three multi-family/residential properties, all located in the United States.
The Company’s operations in Development Services segment are conducted through its indirect wholly owned subsidiaries Trammell Crow Company, Trammell Crow Services, Inc. (both of which merged into Trammell Crow Company, LLC effective January 1, 2012) and certain of its subsidiaries, providing development services primarily in the United States to users of and investors in commercial real estate, as well as for its own account. Trammell Crow Company pursues opportunistic, risk-mitigated development and investment in commercial real estate across a wide spectrum of property types, including industrial, office and retail properties; healthcare facilities of all types (medical office buildings, hospitals and ambulatory surgery centers); higher education facilities (primarily student housing); and residential/mixed-use projects.
Trammell Crow Company acts as the manager of development projects, providing services that are in all stages of the process, including site identification, due diligence and acquisition; evaluating project feasibility, budgeting, scheduling and cash flow analysis; procurement of approvals and permits, including zoning and other entitlements; project finance advisory services; coordination of project design and engineering; construction bidding and management as well as tenant finish coordination; and project close-out and tenant move coordination. As of December 31, 2011, its portfolio of consolidated real estate consisted of land, industrial, office and retail properties and mixed-use projects.
The Company competes with Cushman & Wakefield, Jones Lang LaSalle and Grubb & Ellis.
CBRE Group Inc
400 S. Hope Street
LOS ANGELES CA 90071