In order to enhance service offering in EMEA (Europe, Middle East and Africa) region, CBRE Group Inc. (CBG - Free Report) recently acquired a Prague-based full-service real estate provider firm – IMPACT-CORTI a.s. The upscale acquisition will boost CBRE's competence in Central Europe region.
IMPACT-CORTI is one of the leading firms specializing in property management in the Czech Republic and Slovakia. The company has 140 assets under management, encompassing around 6 million square feet and currently generates annual revenue of around $10 million. Some of the prominent buildings owned by IMPACT-CORTI include LIGHTHOUSE Waterfront Towers, The GEMINI Business Center and the Burzovni Palac, the home of the PSE (Prague Stock Exchange). Post-acquisition, the team of 160 professionals of IMPACT-CORTI will join CBRE’s entrenched property and asset management practice in Europe.
The deal is a strategic fit for this real estate investment trust (REIT) and is expected to provide the prospect for top line growth. Through the acquisition, CBRE Group will combine its expertise with IMPACT-CORTI’s proven expertise in the Czech Republic and Slovakia’s real estate sectors. Also, it will complement the company’s existing property management services in the region and will further boost CBRE Group’s capability to meet the increasing client demand.
CBRE Group, in particular, has been focusing on enhancing the depth and breadth of its operations across Central and Eastern Europe (CEE) to improve services for its clients. The acquisition of Euro Mall Center Management, a CEE shopping centre management specialist, in mid-2011 accentuates the CBRE Group’s strategic focus on CEE region.
We expect the IMPACT-CORTI acquisition to complement the CBRE Group’s existing property management services in the region and further boost CBRE Group’s capability to meet the increasing client demand.
CBRE Group currently carries a Zacks Rank #3 (Hold). REIT’s that are performing better include Federal Realty Investment Trust (FRT - Free Report) , Brandywine Realty Trust (BDN - Free Report) and Cousins Properties Inc. (CUZ - Free Report) . All these stocks carry a Zacks Rank #2 (Buy).