CB Richard Ellis is to build up a pan-European fund management business following the closing of its $431m deal to buy Insignia Richard Ellis.
Funds under management worth £4.4bn will form the European arm of CB Richard Ellis Investors, which runs as a separate company alongside the brokerage, consultancy and professional operation.
CBRE also has €400m under management in co-investment projects on the Continent and plans to set up a pan-European vehicle for institutional and high-net-worth individuals.
The deal to buy Insignia, creating a $1.7bn company, was sealed in New York late last month with CBRE paying $11.15 a share, totalling $270m. With debt and acquisition fees, the total cost was $431m. In Europe, CBRE will employ 2,300 staff and generate annual revenues of around $344m.
