by Erica Billingham
US giant La Salle Partners has scrapped the joint venture between its subsidiary Galbreath and Savills because of a clash of interests.
The move follows a review of the Galbreath-Savills link which La Salle inherited when it bought property manager Galbreath in April.
But La Salle, which is on an aggressive international expansion drive, dismissed speculation that it has restarted talks with Jones Lang Wootton over a possible link-up outside the UK.
Chicago-based La Salle’s spokeswoman Magnes Welsh commented: “There are no current talks going on with Jones Lang Wootten.”
Van Stults, managing director of La Salle’s international business said: “It is clear we have a strategy of international expansion. La Salle has discussions with a number of people at any one time.”
Stults said that both La Salle and Savills agreed that the Galbreath-Savills link no longer worked. Both sides saw a conflict of interests between La Salle’s UK arm, CIN La Salle, and Savills. “We felt there was a competitive conflict in London,” he said.
Galbreath was a member of Savills’ international network – a collection of associations between Savills and 23 other property firms.
Savills chairman Aubrey Adams said: “The conclusion of the joint venture has been done in an entirely amicable way.” He said Savills was talking to “two or three” firms as possible US replacements for Galbreath. Director Victoria Mitchell has been appointed to oversee Savills’ international business.
La Salle floated on the New York Stock Exchange last month, raising $83m which will help fund its plans to expand into Europe and the Far East. In the UK it wants to expand the CIN asset management business and is looking at facilities management.
