News

C&W warns underperformers

News

Julia Cahill

02 February 2008

Agent reports 2007 global turnover up 21% to $1.8bn EMEA up 33% to £282.4m

Cushman & Wakefield reported record results for 2007 this week, but warned staff that it would be tough on “underperformers” now that the boom is over.

“There is no need for wholesale layoffs, but any underperformers won’t stay a day longer than they need to,” warned Paul Bacon, chief executive for Europe, the Middle East and Africa.

According to preliminary figures released yesterday (1 February), the global agent saw a 21% hike in turnover last year to $1.8bn (£904m). The growth was driven by a strong first half for capital markets.

President and group chief executive Bruce Mosler said that C&W had “not created the need to make significant redundancies, which occurs if you make aggressive acquisitions.”

But he added: “We are going into challenging times, and no firm can make absolute commitments.”

Mosler said the firm was still on track to reach the target that he set in 2005: to increase global revenue to $3bn.

Turnover for EMEA rose by 32.8% in the 12 months ended 31 December to £282.4m, with Central and Eastern Europe compensating for the fall-off in investment activity in the UK and Germany in the second half.

The figures are on a par with growth at Jones Lang LaSalle, where EMEA revenue was up 36% to £464m (p45). However, both JLL’s global revenue and UK revenue grew more dramatically than at C&W, where UK turnover rose just 12.9% to £101.8m.

Bacon and Mosler said they saw the downturn as a major opportunity to develop the business through acquisitions.

“We like the fact that we’re a private company with no debt,” said Bacon. “It’s a good situation for us to be making some strategic moves.”

Features, p66

expansion plans

Cushman & Wakefield is planning a major push this year for its separate fund management business across Europe, Asia and the US. C&W Investors has $10bn (£5bn) under management globally, and last year, in a joint venture with financial services group KGAL, launched its first European property fund. “We’re going to centralise the business under a global structure,” said president and group chief executive Bruce Mosler. Other plans include opening offices in cities across Germany, where C&W’s jv with retail adviser Kemper’s Group will terminate in April, following its acquisition by Jones Lang LaSalle this week.

Agent reports 2007 global turnover up 21% to $1.8bn EMEA up 33% to £282.4m Cushman & Wakefield reported record results for 2007 this week, but warned staff that it would be tough on “underperformers” now that the boom is over. “There is no need for wholesale layoffs, but any underperformers won’t stay a day longer than they need to,” warned Paul Bacon, chief executive for Europe, the Middle East and Africa. According to preliminary figures released yesterday (1 February), the global agent saw a 21% hike in turnover last year to $1.8bn (£904m). The growth was driven by a strong first half for capital markets. President and group chief executive Bruce Mosler said that C&W had “not created the need to make significant redundancies, which occurs if you make aggressive acquisitions.” But he added: “We are going into challenging times, and no firm can make absolute commitments.” Mosler said the firm was still on track to reach the target that he set in 2005: to increase global revenue to $3bn. Turnover for EMEA rose by 32.8% in the 12 months ended 31 December to £282.4m, with Central and Eastern Europe compensating for the fall-off in investment activity in the UK and Germany in the second half. The figures are on a par with growth at Jones Lang LaSalle, where EMEA revenue was up 36% to £464m (p45). However, both JLL’s global revenue and UK revenue grew more dramatically than at C&W, where UK turnover rose just 12.9% to £101.8m. Bacon and Mosler said they saw the downturn as a major opportunity to develop the business through acquisitions. “We like the fact that we’re a private company with no debt,” said Bacon. “It’s a good situation for us to be making some strategic moves.” Features, p66 expansion plans Cushman & Wakefield is planning a major push this year for its separate fund management business across Europe, Asia and the US. C&W Investors has $10bn (£5bn) under management globally, and last year, in a joint venture with financial services group KGAL, launched its first European property fund. “We’re going to centralise the business under a global structure,” said president and group chief executive Bruce Mosler. Other plans include opening offices in cities across Germany, where C&W’s jv with retail adviser Kemper’s Group will terminate in April, following its acquisition by Jones Lang LaSalle this week.