A potential merger between Town Residential and boutique Beverly Hills brokerage the Agency is now dead in the water.
Town CEO Andrew Heiberger informed his managers this afternoon that he and co-owner Joseph Sitt would not move forward with merger talks, according to an email reviewed by The Real Deal.
“As has been reported in recent weeks, Joe Sitt and myself entered into discussions with The Agency regarding a potential collaboration, merger, or acquisition,” Heiberger said in the email. “I’m writing to inform you that we have decided not to pursue this opportunity at this time. I look forward to seeing you all at the meeting next Thursday.”
Heiberger did not elaborate on his reasons for calling off the deal in the email, and couldn’t be reached for comment by TRD Friday. The Agency’s principals Billy Rose and Mauricio Umansky did not respond to requests for comment.
Heiberger and Sitt have been co-owners of the firm since 2012, when Sitt was brought on board as an investor and co-chairman. Rumors have swirled for more than a year that Sitt was looking to sell his stake in the firm.
According to sources familiar with the company, Town may yet enter a “strategic alliance” with the Agency, in lieu of a merger.
On Thursday, citing Rose’s divorce filings, TRD reported that the Agency made less than $1 million in net income in the 36 months ending Dec. 31, 2014.