Jones Lang LaSalle Incorporated (JLL - Free Report) , which shortened its name to “JLL” in Mar 2014, announced the acquisition of CLEO Construction Management as part of its effort to enhance healthcare-oriented real estate services.
The acquisition of Orange County, CA-based CLEO, a construction project management services firm that concentrates on medical facilities, is expected to close later this month, subject to customary closing norms.
As a matter of fact, healthcare-facility owners are aggressively vying for expansions and refurbishments to meet the rising demand of their patient population. Healthcare facilities are seeking cost reductions as well as risk minimization in terms of both operations and capital projects, simultaneously aiming to raise the quality and efficiency level of their facilities.
This, in turn, is driving the demand for healthcare facilities-focused specialized real estate services in the West. Hence, the CLEO acquisition is a strategic fit for JLL. Moreover, with this deal, 13 people from CLEO come on board for JLL, with Jeff and Tim Fyffe – the founders of CLEO – joining JLL as senior vice presidents.
These experts would report to Carlos Serra, Managing Director for the Southwest Project and Development Services (PDS) Group. Notably, the PDS group deals with over 12,000 projects annually, and currently $12 billion in projects under management.
In addition to this acquisition, JLL is also strengthening its services platform on the West Coast by recruiting old hand healthcare brokers Paul Braun and Chris Ross for offering healthcare leasing, investment sales and occupier services in San Diego.
We believe such strategic acquisition and opportunistic hires would provide JLL the required capability for capitalizing on this specialized real estate services market in the West, along with assistance in managing complex healthcare projects.
JLL currently carries a Zacks Rank #3(Hold). Investors interested in the real estate industry may consider better-ranked stocks like Alexander & Baldwin, Inc. , AV Homes, Inc. and Kennedy-Wilson Holdings, Inc. All these stocks carry a Zacks Rank #2 (Buy).