CBRE Group, Inc. recently announced the acquisition of Paris-based full service retail property consultancy, Convergences-CVL. This buyout is expected to strengthen CBRE’s retail sector services in France, where the company has already exceled in office and industrial leasing sectors.
Convergences-CVL, which was founded in 2010, currently has 27 employees, headed by Jérôme Le Grelle. The company offers a comprehensive list of realty services in the retail sector, including strategic planning, transaction execution and property management. Its diverse client base includes public sector entities, developers and retailers. Le Grelle will be the head of retail for CBRE in France.
Per CBRE’s management, the acquisition will enhance the company’s expertise in the field of retail consultancy and development advisory. Further, the transaction is anticipated to improve its retail service offering to domestic and global clients in France. On the other hand, management of Convergences-CVL believes that CBRE's global presence and wide service offerings will help the former in fortifying its position in the retail service sector of the country.
Notably, strategic in-fill acquisitions have played a vital part in widening CBRE’s geographic coverage, as well as expanding its service offerings. In June, the company inked a definitive agreement to acquire a majority interest in Caledon Capital Management Inc, a Toronto-based infrastructure and private equity solutions provider. Moreover, in May 2017, CBRE announced the acquisition of the full-service commercial real estate services firm – Brenner Real Estate Group (BREG) – in South Florida. This move strengthened the company’s capabilities in the region.
We believe that CBRE's wide array of service offerings, strong technology platform, sound liquidity and solid cash generating capabilities will open up a number of opportunities for the company’s growth. However, the uncertainty in certain economies and unfavorable foreign currency movement remain concerns for the company.
Moreover, shares of CBRE outperformed the Zacks categorized Real Estate – Operations industry, over the past three months. CBRE’s shares climbed 11.3% over this time span, while the industry gained 8.3%.
CBRE currently carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
Investors can also consider other top-ranked stocks in the industry like Sun Hung Kai Properties Ltd. , HFF Inc. (HF - Free Report) and Henderson Land Development Company Limited (HLDCY - Free Report) . While Sun Hung Kai Properties Ltd. sports a Zacks Rank #1 (Strong Buy), HFF Inc. and Henderson Land Development Company Limited stocks carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sun Hung Kai Properties Ltd. and HFF Inc. have long-term growth rates of 7.6% and 15.0%, respectively. Further, Henderson Land Development Company’s earnings estimates for 2017 remained unchanged at 44 cents over the past 60 days.
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