Savills completes US$1.1 bil acquisition of Eastdil Secured
The enlarged platform could intensify competition for major commercial property mandates by combining Savills’ global network with Eastdil Secured’s capital-markets and investment-banking expertise.
Savills completed its US$1.1125 billion acquisition of Eastdil Secured, creating the second-ranked global adviser for prime commercial property transactions above US$100 million.
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London-listed real estate advisory firm Savills Plc has completed its acquisition of Eastdil Secured, a global real estate investment bank, for an enterprise value of US$1.1125 billion (about $1.43 billion). The deal was first announced in March.
The acquiree will be rebranded to Eastdil Secured Savills with immediate effect and operate within the group as Savills’ real estate investment banking arm.
According to Savills, the combined group will be “the number two advisory firm globally for prime commercial real estate transactions above $100 million”. "Together we provide a stronger, globally connected platform enabling us to deliver for clients at every stage of the property cycle," adds Simon Shaw, group CEO of Savills Plc.
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“With the transaction complete, we look forward to working alongside our colleagues at Savills to broaden the expertise and resources available to our clients while continuing to deliver the unparalleled capital markets expertise, execution and discretion that have long defined Eastdil Secured,” says D Michael Van Konynenburg, CEO of Eastdil Secured Savills.
Savills funded the deal through loan finance and the issue of new ordinary shares in Savills to Eastdil Secured’s equity-holders, which include Singapore’s Temasek Holdings, global fund manager Guggenheim Partners, US bank Wells Fargo, and Eastdil’s leadership and senior employees. The new shares represent approximately 16% of Savills’ enlarged share capital.