December 7, 2011 / 1:41 AM / 7 years ago

UPDATE 2-Prudential to exit real estate brokerage business

* Brookfield Residential to buy business for $110 mln

* Seeks to set up franchise in India

Dec 6 (Reuters) - Canada’s Brookfield Residential Property Services said it will acquire Prudential Financial Inc’s real estate brokerage and relocation services business for about $110 million.

The Brookfield Asset Management division said the acquisition will make it the world’s second biggest relocation service and the third largest residential real estate brokerage in North America.

Brookfield Residential Chief Executive Graham Badun said its relocation business is largely in markets outside North America. The deal will expand the company’s footprint in nine countries.

“We’re going to look to digest the acquisition and then look for some organic growth from that into new markets,” Badun told Reuters by phone.

The company is actively looking to establish a franchise operation in India, he added.

Prudential’s real estate brokerage affiliates will continue to use the existing brand, while the relocation services business will operate as Brookfield Global Relocation Services.

Earl Lee will continue to lead the U.S. real estate business, while Rick Schwartz, president of Brookfield Global Relocation Services, will head the combined global relocation services business.

Prudential has also agreed to give Brookfield about $430 million in transitional financing through purchase and credit facilities, it said in a regulatory filing.

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