Trending
Colliers buying 75% stake in Harrison Street Real Estate for $450M
The deal could be worth another $100M for Harrison Street based on its future performance
Colliers International Group is buying a 75 percent stake in investment management firm Harrison Street Real Estate Capital for $450 million.
The deal could be worth another $100 million for Chicago-based Harrison Street in 2022 if it meets certain performance goals, the companies said today, in announcing the deal.
“The transaction establishes us as one of the major players in global real estate investment management, providing an important new growth platform that also facilitates the integration of our existing operations in Europe,” Jay Hennick, Chairman and CEO of Colliers International, said in a statement.
Harrison Street’s senior management team will run the firm’s day-to-day operations and hold the balance of the equity. Co-founder and CEO Christopher Merrill will serve as chief executive and remains the largest individual shareholder.
Merrill said in a statement Colliers will provide “long-term stability.” He added, “the relationship strengthens our global capability and offers unique market knowledge and deep relationships with owners and occupiers of real estate around the world.”
Toronto-based Colliers said it expects the annual run rate of management fee revenue to be between $100-115 million.
Founded in 2005, Harrison Street specializes in the education, healthcare and storage sectors, and has some $14.6 billion in assets under management.
The transaction is expected to close by the third quarter this year.