So now we know. The next mega-merger will be C&W and Savills. No, hang on. It’s definitely a UGL-less DTZ and C&W. Wait a minute what do we really know? Only that the property rumour mill is back in overdrive.
There’s logic to each of those deals, although discussions will be, at best, at a formative stage. None of the parties will comment on speculation, naturally, but, at the time of writing at least, no talks were thought to be live.
But forgive a moment’s speculation: were one or other to happen, which deal might make the best fit?
Just two weeks ago, Savills chief executive Jeremy Helsby talked of his desire to expand the business in the US. While he didn’t explicitly say that acquisitions were inevitable, given that only 1% of his turnover is generated there, meaningful growth could come only through M&A.
On that basis, a Cushmans deal makes perfect sense: the firm is strong in the US; less so in Europe and Asia, where Savills’ footprint impresses.
Add to that the expectation that Cushmans’ majority owner, the Agnelli family, would take the right price if it were offered an exit, and you can see why the flames are being fanned.
It’s a similar tale with DTZ: it offers similar regional strengths to those that Savills would bring to the table, which again would complement Cushmans’ offer nicely.
It’s all speculative, but DTZ and Savills shouldn’t complain about the attention they are being subjected to. Helsby’s comments about US growth invited the spotlight to be shone on the future of his business. Similarly, with DTZ’s parent UGL announcing a strategic review of that business, speculation was bound to mount about where its future might lie.
It is only Cushmans that has done nothing that could be interpreted as throwing its hat into the ring; well, not publicly at least. And that should give it the upper hand in any negotiations that may or may not come to pass in a hotel room in Sydney, London or Turin.
The UGL review will take months, and Cushmans and Savills are not under pressure to act. Yet, I’m reminded of a comment made by an unconnected party looking to duck awkward questions about his own future this week.
“If the ball came loose from the back of the scrum, which it won’t of course, it would be a great, great thing to have a crack at,” said Boris Johnson, when pressed about his prime ministerial ambitions.
If asked whether any one of them would want to create a global firm to rival JLL and CBRE, wouldn’t DTZ, Cushmans and Savills say the same? The only problem, for now at least, is that the three of them are – and are required to be – every bit as evasive as the London mayor in spelling that out. In the medium term, either alliance would reshape the top of the property tree.
The 21st annual Property Marketing Awards, run by the Chartered Surveyors Company in partnership with Estates Gazette, launches this week. We’re looking to recognise the best marketing campaigns – including digital – the best corporate website and the best marketing teams out there. The entry deadline is 19 April; the awards will be presented at BAFTA on London’s Piccadilly on 24 June. To enter go to www.propertymarketingawards.co.uk
Happy birthday to the National Planning Policy Framework. Was there a party in your office? No? I’m not surprised.
After all, only half of England’s 336 councils have adopted the local plan required by the NPPF; 98 haven’t even published one yet, much less adopted it.
Interestingly, of the latter, 55 are Tory-controlled. Hardly a ringing endorsement for a flagship party policy.
