In an effort to boost its service offering in the southeast, CBRE Group Inc. (CBG - Free Report) purchased the commercial real estate services businesses of Atlanta-based Resource Real Estate Partners LLC (RREP) and TPA Realty Services LLC.
Through this acquisition, CBRE Group’s Atlanta property management portfolio will gain office and industrial assets spanning over 13 million sq. ft. However, RREP/TPA’s operations, which are still developing, will be excluded from this acquisition.
In addition to the office and industrial assets, CBRE Group will retain 70 employees from the RREP/TPA businesses. These employees, who are skilled in leasing and investment sales in the region, will be incorporated in the present offices of CBRE Group in the Atlanta region.
As a matter of fact, based on 2011 revenues of $5.9 billion, CBRE Group is the world’s largest commercial real estate services firm, with leading full-service operations in major metropolitan areas throughout the world.
Further, this particular acquisition will help CBRE Group augment its service offerings in the northeast Atlanta submarket and complement its existing capabilities in Atlanta. Such strategic moves are expected to bode well for the company’s top line.
The company operates as a single-source provider of real estate solutions with a broad range of real estate product and services, and an extensive knowledge of domestic and international real estate markets.
CBRE Group, however, reported relatively unimpressive results in the third quarter of 2012, with its earnings missing the Zacks Consensus Estimate by 7 cents, as the sovereign debt crisis in Europe and a slow growth trajectory in Asia held back its momentum.
Currently, CBRE Group has a Zacks #5 Rank, implying a short-term Strong Sell rating. One of its peers -- Jones Lang LaSalle Incorporated (JLL - Free Report) -- carries a Zacks #4 Rank, translating to a short-term Sell rating.