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CBRE Group Expands in Israel, to Buy Stake in Ramot Group

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CBRE Group Inc. (CBRE - Free Report) has announced to acquire a majority interest in Israel-based facilities management provider, Ramot Group. Terms of the deal have not been undisclosed yet. The deal, subject to customary regulatory approvals, is likely to be completed by third-quarter 2018.

Notably, Ramot Group has been working with CBRE Group since 2009 and providing services to CBRE Group’s Israel-based corporate clients. Post-acquisition, Ramot Group will offer its specialized technical capabilities and facilities management while working as part of CBRE Group’s Global Workplace Solutions (GWS), an occupier outsourcing business in Israel.

Founded in 1993, Ramot Group offers services like technical maintenance, project management, cleaning services, reception administration, and environmental health and safety. Per CBRE Group, the team at Ramot Group is viewed as highly competent and their association will help the company in delivering great results to clients. Hence, the acquisition seems a strategic fit.

CBRE Group has been focusing on expanding its presence in Israel. In April 2018, it acquired MAN Properties. Capital markets and leasing services are provided by MAN Properties in office, technology and retail sectors.

Notably, CBRE Group has banked on strategic in-fill acquisitions to widen its geographic coverage while expanding and reinforcing service offerings. The company focuses on acquiring regional or specialty firms, which complement its existing platform as well as independent affiliates, in which, at times, it holds small stakes. As market conditions continue to improve, we believe, these opportunistic acquisitions and strategic investments will likely serve as growth drivers.

Further, with CBRE Group’s market-leading position and an increasing trend of real estate occupiers turning to outsourcing, the company remains well poised to continue experiencing a flourishing trend in this business line.

Shares of this Zacks Rank #2 (Buy) stock have surged 38.9% over the past year, widely outperforming the industry’s growth of 7.1%.



 

Other Stocks Worth a Look

A few other top-ranked stocks from the same space are Colliers International Group Inc. (CIGI - Free Report) , Jones Lang LaSalle Incorporated (JLL - Free Report) and Vonovia SE Unsponsored ADR . All the stocks carry a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Colliers International’s Zacks Consensus Estimate for 2018 remained unchanged at $3.60 in a month’s time. Its shares have returned 39.1% over the past year.

Jones Lang LaSalle’s Zacks Consensus Estimate for the current year has risen 1.4% to $10.37 in the past month. Its shares have gained 43% in a year’s time.

The Zacks Consensus Estimate for 2018 earnings of Vonovia has remained stable at $1.19 over the past month. Its shares have increased 21.6% over the past year.

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