FINANCE: GVA has confirmed that its US partnership with Cassidy Turley could end following the news that the Washington DC-based firm is to merge with DTZ.
GVA Worldwide had partnered with Cassidy Turley from 2011, after the US real estate consultant broke away from Colliers International.
A cessation of the partnership is dependent on completion of Cassidy Turley’s agreed takeover by DTZ’s private equity owners, which is still subject to a shareholder vote.
It is understood that GVA, which in May was bought German giant Bilfinger in a £150m deal, is now looking for new stateside opportunities.
A spokesperson for GVA said: “We acknowledge the announcement made by Cassidy Turley today, and we wish them and their venture capital partner Texas Pacific Group well on their new journey.
“GVA Worldwide successfully partnered with Cassidy Turley from 2011. However, earlier this year GVA announced Bilfinger, the €8.5bn (£6.7bn) turnover global engineering and services group, as its new strategic merger partner, a move that has transformed GVA’s drive for major growth and significantly strengthened its ambitions to compete on the world stage.
“With GVA Worldwide, Bilfinger Real Estate is now focussed on building a major network of real estate advisers globally.”
DTZ is set to become the third largest agent globally by revenue after its new owners, a TPG-led consortium, agreed to buy Cassidy Turley for an undisclosed amount.
The deal propels DTZ ahead of Cushman & Wakefield in terms of global revenue to sit behind CBRE and JLL in the fiercely competitive agency ranks.
A major US deal by TPG, PAG Asia Capital and Ontario Teachers’ Pension Plan had been expected since the consortium, which has a combined £116bn of assets under management, agreed its takeover of DTZ in June.
The involvement of former CBRE group chief executive Brett White as a co-investor in the DTZ spurred speculation about rapid growth in his home turf of the US.
White has again co-invested in the Cassidy Turley deal and has been confirmed as joining the group as an executive chairman in March 2015.
The deal also emphasises the importance of a strong US allegiance or platform in the battle for global domination by property advisers, and comes just months after Savills bought New York-based Studley for $260m (£159m) cash and stock to form Savills Studley.
bridget.o’connell@estatesgazette.com
