Guggenheim and Singapore fund make move to buy Eastdil: report

Wells Fargo bought firm for $150M in 1999

National /
Mar.March 29, 2019 11:34 AM
Eastdil Secured CEO Roy March and Guggenheim president Jerry Miller

Eastdil Secured CEO Roy March and Guggenheim president Jerry Miller (Credit: Miller via Guggenheim and March by Marc Scrivo)

A partnership between Guggenheim Investments and Singapore sovereign-wealth fund Temasek Holdings is in advanced talks to buy Eastdil Secured from Wells Fargo, according to the Wall Street Journal.

As part of the deal, Eastdil CEO Roy March and senior management would take an ownership stake in the commercial brokerage, according to the Journal. Eastdil was long the leader in the New York investment-sales market, but has struggled over the past two years after losing key players. It took third spot in The Real Deal’s most recent ranking of top investment-sales firms in New York, brokering about $5.9 billion worth of deals. It had taken the top spot for seven years in a row between 2010 and 2016, but ceded the crown to Cushman & Wakefield after Cushman bagged Eastdil’s top dealmaking duo, Doug Harmon and Adam Spies.

Wells Fargo bought Eastdil for about $150 million in 1999, and started looking around for buyers last year. Rather than shopping the firm around to bigger commercial brokerages such as JLL and Cushman & Wakefield, the bank had been turning to private-equity firms.

Guggenheim Investments is the money-management arm of Guggenheim Partners, a global investment firm with over $300 billion in assets under management. Temasek controls the likes of Singapore Airlines, and estimates its global portfolio to be worth over $200 billion. The Journal reported that a deal, if completed, would mark Temasek’s first direct investment in a U.S. brokerage. It would also bolster Eastdil’s plan for an Asia expansion, and free it from the regulatory hurdles of being tied to a U.S. bank.

The discussions come as the commercial-brokerage world is experiencing a period of major consolidation and some of the bigger players have gone public. This month, JLL paid $2 billion for rival HFF; last year, Newmark Knight Frank closed on its acquisition of retail-focused RKF;  and both Cushman and Newmark went public last year. [WSJ]Hiten Samtani


Related Articles

arrow_forward_ios
A photo illustration of Related Companies' Jeff Blau (Getty)
Related proposes 1,500-room resort in Hudson Yards casino bid
Related proposes 1,500-room resort in Hudson Yards casino bid
Jared Kushner and 666 Fifth Avenue (Getty, David Shankbone, CC BY 2.5 - via Wikimedia Commons)
Congress probes Jared Kushner’s dealings amid 666 Fifth Avenue sale
Congress probes Jared Kushner’s dealings amid 666 Fifth Avenue sale
Council member Pierina Ana Sanchez and RSA’s Joseph Strasburg (Getty; Twitter)
Citing Bronx fire, Council pushes building violation crackdown
Citing Bronx fire, Council pushes building violation crackdown
SB Development’s Joseph Stern and Northwind’s Ran Eliasaf with rendering of Nova (LinkedIn, NOVA)
SB Development, Hazelton Capital score $62M loan for LIC condo tower
SB Development, Hazelton Capital score $62M loan for LIC condo tower
Illustration of Mayor Eric Adams (Getty; Illustration by Kevin Rebong for The Real Deal)
Oh, rats! Eric Adams contests summons for infestation
Oh, rats! Eric Adams contests summons for infestation
A photo illustration of Douglaston Development CEO Jed Resnick (Getty, NYC Department of Finance, LinkedIn/Jed Resnick)
Douglaston CEO sees 421a dead until 2026
Douglaston CEO sees 421a dead until 2026
Brookfield's Bruce Flatt with 1100 Newark Turnpike (Loopnet, Brookfield)
Brookfield buys CSX industrial site in Northern New Jersey for $67M
Brookfield buys CSX industrial site in Northern New Jersey for $67M
198 Scholes Street, 65 Kent Avenue, 506 DeKalb Avenue and 11 Gunther Place (Illustration by the Real Deal with Getty, Google Maps)
Avi Philipson deal to acquire All Year portfolio is back on
Avi Philipson deal to acquire All Year portfolio is back on
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...