CBRE Group, Inc. (CBG - Analyst Report) disclosed the acquisition of Fameco, the retail real estate services leader in the U.S. Mid-Atlantic region. The strategic move is aimed at enhancing the company’s retail business in the greater Philadelphia area and throughout the Mid-Atlantic region.
Fameco, incepted in 1992, mainly offers retailer representation, investment sales, agency leasing, property management and land brokerage services in New Jersey, Delaware and Pennsylvania. With the Fameco-buyout, CBRE’s leasing portfolio will add 250 shopping centers and retail properties (spanning 20 million sq. ft). Also, the company will get 20 million sq. ft. of retail property management assignments.
In addition, Fameco’s 75 retailers will be enrolled in CBRE’s tenant list. Fameco’s tenants comprise several industry leading companies such as AutoZone, Inc. (AZO - Analyst Report), The Home Depot, Inc. (HD - Analyst Report), CVS Pharmacy, Chipotle Mexican Grill, Inc. (CMG - Analyst Report) and CarMax.
Moreover, Fameco’s efficient team that consists of over 100 professionals will now become part of CBRE’s workforce. In fact, CBRE intends the Fameco team to provide retail real estate services throughout the Mid-Atlantic region under the trade name of CBRE|FAMECO.
We expect this strategic deal to boost CBRE’s competence in the retail domain and further boost the company’s capability to meet the increasing client demand. In addition, the inclusion of high-end tenants promises steady top-line growth for CBRE.
Notably, CBRE has been focusing on enhancing the depth and breadth of its real estate services on a global platform. Consequently, in Mar 2013, CBRE acquired IMPACT-CORTI a.s – a Prague-based full-service real estate provider firm. Such upscale acquisitions pave the way for the enhancement of CBRE’s quality of service offering and market position on both a national and international level.
CBRE currently carries a Zacks Rank #3 (Hold).