It is not only the FIFA 2014 World Cup Trophy that will march into Germany now as commercial real estate services and investment firm, CBRE Group, Inc. (CBG - Free Report) , is also strengthening its presence in the country by signing a deal to acquire Preuss Gesellschaft mbH and its subsidiaries.
This represents CBRE’s second acquisition in this country this year after the purchase of the real estate technical consulting firm -- VALTEQ Gesellschaft mbH – in February this year.
Subject to the German regulatory nod, this acquisition of Preuss, a company that is engaged in project management of new real estate development and overhaul of large properties, is expected to close by the end of third-quarter 2014. Founded in 2003 by Dr. Norbert Preuss, the company has a team of around 100 professionals comprising architects, civil engineers and HVAC engineers and has offices in Munich, Berlin, Frankfurt and Dusseldorf.
The buyout is a strategic one for CBRE, given the prospects for solidifying the company’s building consultancy offering in this major market. Notably, the other acquisition – VALTEQ – broadened CBRE Group’s consultancy platform in Germany and diversified its service offerings and brought on board VALTEQ’s team of professionals comprising civil engineers, architects, economists, geologists and service technicians.
Going forward, we believe that with market conditions continuing to improve, opportunistic acquisitions would serve as growth drivers, supplementing the company’s organic growth. Moreover, improving property sales, leasing and outsourcing business augur well.
CBRE currently carries a Zacks Rank #3 (Hold). Investors interested in the real estate industry may also consider stocks like Alexander & Baldwin, Inc. , AV Homes, Inc. (AVHI - Free Report) and LGI Homes, Inc. (LGIH - Free Report) . All these stocks carry a Zacks Rank #2 (Buy).