Brookfield affiliate buys Prudential Real Estate and Relocation Services for $110M

December 07, 2011 08:46AM

A Brookfield Asset Management affiliate has purchased Prudential Real Estate and Relocation Services, Brookfield announced yesterday, establishing the company as the world’s second largest employee relocation services provider and the third largest residential real estate franchising business.

The purchase, before transaction related expenses, was approximately $110 million, a spokesperson for Brookfield told The Real Deal. As of Sept. 30, 2011, the net book value of the transferred business was approximately $25 million.

“This transaction creates a global employee relocation services and real estate franchising leader,” said Graham Badun, CEO of the affiliate, Brookfield Residential Property Services. “We have now increased the breadth and depth of our service offering, keeping pace with the evolving needs of our clients around the world.”

Earl Lee, president of Prudential Real Estate and Relocation Services, will continue to lead the U.S. real estate business, while Rick Schwartz, president of Brookfield Global Relocation Services, will take responsibility for the combined global relocation services business.

“Today, Prudential’s real estate and relocation services businesses join a global company with a track record of over 100 years of success,” Lee said. “We’re excited to become part of a company that is focused on and deeply immersed in the real estate sector and is in the business for the long-term.”

According to a licensing agreement, Prudential Real Estate brokerage affiliates will be able to continue to use the Prudential brand based on the terms of their franchise agreements, Brookfield said. –– Katherine Clarke