JLL has been shortlisted to purchase Bilfinger SE’s property businesses, including Bilfinger GVA.
The shortlist of four also includes Swedish private equity firm EQT, a German private equity firm and a facilities management company.
A decision to reduce the shortlist to two parties is expected imminently although the initial intention to announce a preferred party during MIPIM is unlikely, owing to a slip in the proposed schedule.
A purchase of the Bilfinger businesses would bolster JLL’s facilities management offer in Europe, which it is focused on expanding. The attraction of the facilities management business is that it provides a steady income stream as well as opportunities for cross-selling.
Facilities management businesses are able to increase their thin margins through economies of scale and this would be a major advantage for JLL and the other FM company in the running.
A successful bid from EQT or the German investment house would see GVA return to private equity ownership – when Bilfinger bought GVA in 2014 it was 27.5% owned by Lloyds Development Capital.
Bilfinger’s largest stakeholder is Swedish investment firm Cevian Capital, which is understood to have a close relationship with EQT in their homeland.
CBRE, which was once rumoured to be in talks to buy the businesses, is not in the running.
It is understood that Bilfinger’s preference is to sell the businesses as an entire package, as opposed to breaking up the FM and transactional businesses.
Any purchaser could, however, consider sub-trades to other parties that have not been shortlisted.
Bilfinger commenced a formal review of its property businesses in January following a series of unsolicited offers.
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