Colliers to Acquire Market Leading Commercial Real Estate Firm in Italy

Rhea-AI Summary

Colliers (CIGI) has announced the acquisition of a controlling interest in Colliers Italy, enhancing its operations in Europe.

The acquisition includes Colliers International Italia, Colliers Real Estate Services Italia, and Colliers Real Estate Management Services Italia, previously affiliated operations. This strategic move aims to bolster service capabilities and utilize Colliers' extensive resources, with expected revenues of approximately €16 million for 2021. The deal is anticipated to close in Q1 2022, pending customary conditions.

Positive

• Acquisition enhances Colliers' market leadership in key European markets, particularly in Milan and Rome.
• Expected revenue generation from Colliers Italy is approximately €16 million for the year ending December 31, 2021.
• The partnership allows existing shareholders to retain equity, providing continuity and stability.

Negative

• None.

Acquisition adds another strong company-owned operation in key European market

TORONTO and MILAN, Oct. 27, 2021 /PRNewswire/ -- Leading diversified professional services and investment management company, Colliers (NASDAQ: CIGI) (TSX: CIGI), announced today it has entered into an agreement to acquire a controlling interest in Colliers International Italia S.p.A., Colliers Real Estate Services Italia S.R.L. and Colliers Real Estate Management Services Italia S.R.L. (collectively, "Colliers Italy"), which was previously an affiliate operation. The current shareholders of Colliers Italy, Ofer Arbib and Giulia Longo, will retain an equity interest in the business under Colliers' unique partnership model. As a company-owned operation, Colliers Italy will continue to build on its market leadership position by increasing service capabilities and leveraging the vast resources of Colliers' strong and highly innovative platform across Europe. The transaction is subject to customary closing conditions and is expected to close in the first quarter of 2022. Details of the transaction were not disclosed.

Originally founded in 1996, Colliers Italy has grown to over 80 professionals providing landlord agency, tenant representation, investment sales brokerage, property management, valuation and project management services to investors, developers and occupiers of commercial real estate. Colliers Italy is expected to generate approximately €16 million of revenues for the year ending December 31, 2021.

"Milan and Rome are key European markets with a combined population of over 4.3 million and home to nearly all major Italian businesses and investors," said Chris McLernon, CEO | EMEA for Colliers. "Colliers Italy has a market leading position and an experienced team of highly respected professionals with extensive knowledge of the Italian real estate landscape. This new partnership will allow Ofer and Giulia to continue their success and leverage the additional resources of the global business to better serve our clients domestically and internationally."

"Given our long association with Colliers, this was a natural next step for our firm. Their enterprising approach and partnership philosophy will provide us with greater access to the broader Colliers platform to expand our capabilities and capitalize on the opportunities in our growing market," said Giulia Longo, co-principal of Colliers Italy.

About Colliers

Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 66 countries, our more than 15,000 enterprising professionals work collaboratively to provide expert advice to real estate occupiers, owners and investors. For more than 25 years, our experienced leadership with significant insider ownership has delivered compound annual investment returns of almost 20% for shareholders. With annualized revenues of $3.3 billion ($3.6 billion including affiliates) and $45 billion of assets under management, we maximize the potential of property and accelerate the success of our clients and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.

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SOURCE Colliers

FAQ

What is Colliers' recent acquisition focused on?

Colliers' recent acquisition focuses on acquiring a controlling interest in Colliers Italy to strengthen its position in the European market.

What are the expected revenues from Colliers Italy?

Colliers Italy is expected to generate approximately €16 million in revenues for the year ending December 31, 2021.

When is the acquisition of Colliers Italy expected to close?

The acquisition is expected to close in the first quarter of 2022, subject to customary closing conditions.

Why did Colliers decide to acquire Colliers Italy?

The acquisition aims to enhance service capabilities and leverage Colliers' extensive resources in the European market.

Who retains equity in Colliers Italy after the acquisition?

Current shareholders Ofer Arbib and Giulia Longo will retain an equity interest in Colliers Italy as part of the acquisition.