Colliers adds further scale to U.S. Property Management business

Rhea-AI Summary

Colliers (CIGI) has announced its acquisition of a controlling interest in Arcadia Management Group, a prominent commercial real estate property management firm in the Southwest U.S. Founded in 1986, Arcadia manages over 60 million square feet across 24 states. The partnership will allow Arcadia to leverage Colliers' global capabilities for enhanced client service. This strategic acquisition strengthens Colliers' position as a leading property management firm in a fast-growing market, with annual revenues of $4.5 billion and significant inside ownership driving strong investment returns.

Positive

• Acquisition strengthens Colliers' position in the Southwest U.S. market.
• Arcadia's management will maintain equity stake and operations.
• Colliers has a strong track record with 20% compound annual investment returns.

Negative

• None.

TORONTO and PHOENIX, Oct. 12, 2022 (GLOBE NEWSWIRE) -- Leading diversified professional services and investment management firm Colliers (NASDAQ and TSX: CIGI) today announced it will acquire a controlling interest in Arcadia Management Group, Inc. (“Arcadia”), a leading commercial real estate property management firm focused in the Southwest U.S. Arcadia’s senior leadership will retain a direct equity stake in the business and continue to drive operations going forward under Colliers’ unique partnership model. Arcadia will rebrand as Colliers immediately following closing. Details of the transaction were not disclosed.

Founded in Phoenix in 1986, Arcadia and its 150 professionals provide property management, property accounting services, and project management to over 60 million square feet of office, retail, and industrial properties in 24 states.

“Our strategic investment in Arcadia positions Colliers as the leading property management firm in the important and fast-growing Southwest U.S. market,” said Karen Whitt, President, Real Estate Management Services of Colliers | U.S. “We are excited to welcome this talented group of professionals to our organization and look forward to helping them accelerate their success – and that of their clients – as part of Colliers.”

“Arcadia has enjoyed tremendous success in our 36 years as an independent firm, and the natural next step for us was to partner with a leading global brand and operating platform with national and global capabilities and operating tools to better meet the needs of our clients,” said Gary Shaw, Regional Managing Director and Partner of Colliers Real Estate Management Services, Arizona, Utah and Austin. “Both leadership teams recognized early in the process that we share an entrepreneurial and collaborative culture. We look forward to enhancing client service and helping our professionals leverage the benefits of this world-class organization.”

About Colliers

Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 63 countries, our 17,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. For more than 27 years, our experienced leadership with significant inside ownership has delivered compound annual investment returns of 20% for shareholders. With annual revenues of $4.5 billion and $87 billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of our clients, our investors, and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.

Company Contacts:

Christian Mayer
Chief Financial Officer
(416) 960-9500

Karen Whitt
President Real Estate Management Services | U.S.
(703) 650-5709

FAQ

What does Colliers' acquisition of Arcadia Management Group mean for CIGI shareholders?

The acquisition enhances Colliers' market position, potentially leading to increased revenue and investment returns for shareholders.

How will Arcadia be integrated into Colliers?

Arcadia will be rebranded under Colliers and its management team will continue operations, benefiting from Colliers' global resources.

What are the financial implications of the acquisition for Colliers?

While specific financial terms are undisclosed, the acquisition is expected to drive growth in the Southwest U.S. market, impacting overall revenues positively.

When was the acquisition of Arcadia Management Group announced?

The acquisition was announced on October 12, 2022.