Savills is in talks to acquire regional specialist GBR Phoenix Beard.
The two agencies are in negotiations which could see global brand Savills add niche agent GBRPB to its UK operation.
The news follows Savills’ announcement this morning that it has acquired specialist residential management business Chainbow. All 28 Chainbow employees will join Savills with immediate effect.
Savills has been on the acquisition trail in the UK for some time. Earlier this month, it took a minority stake in online real estate advisory company YOPA Property. And in April, it took on Deloitte Real Estate’s City of London investment team, following a formal strategic review of DRE’s agency and investment businesses.
Outside of the UK, its investment arm Savills Investment Management is reported to be looking to make a major acquisition in the US as part of its expansion plans. Savills also plans to open a Shanghai office this year, and is targeting smaller bolt-on acquisitions in both Asia and Europe as it expands.
GBRPB’s head office is in Birmingham, it also has offices in London and Leeds. The firm is known for having a strong property management business. It strengthened its transactions offer back in 2010, when it merged with local agent GBR Property, to form GBR Phoenix beard.
Market observers said GBRPB and Savills have had “various discussions over the years” about joining forces, but these talks have recently “gathered momentum”.
Birmingham has had a record year in terms of development and investment with the highest level of office development for 13 years, according to Deloitte Real Estate’s latest Birmingham Crane Survey and a record 1m sq ft of city centre deals transacted in 2015. The city also saw its highest-ever Q1 2016 take-up figure of 283,697 sq ft recorded (since records began) by the Birmingham Office Market Forum.
Back in March, Savills posted record UK results for 2015, showing revenues up by 11% to £560.1m. Revenue from UK commercial transactions increased by 17% to £98.8m, which Savills said reflected high activity in both London and the regional markets.
Just two weeks ago, Savills and GBR Phoenix Beard won the instruction to become joint letting agents for the office element of Birmingham’s £200m Three Snowhill development. The 19-storey building is being built by Ballymore and forward funded by M&G. It is due to complete in 2018.
Savills and GBR Phoenix Beard declined to comment.
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