Lutnick’s BGC Partners plans IPO for Newmark

Los Angeles /
Feb.February 09, 2017 06:30 PM

From the New York website: Howard Lutnick’s BGC Partners, the parent company of Newmark Grubb Knight Frank, took the first step Thursday toward spinning the brokerage off into a separate company through an initial public offering.

The company issued a statement Thursday saying it had confidentially submitted a draft registration statement relating to the IPO with the Securities and Exchange Commission.

“Earlier today, we issued a press release relating to the confidential filing of our registration statement for the proposed IPO of Newmark, our real estate services business,” Lutnick said in a statement. “Since we are currently in the registration process, we are subject to the restrictions under the securities laws on communications relating to the offering.”

The press release noted that BGC may distribute the shares it will hold in the new public company to its shareholders. BGC stock rose 4.4 percent following the news.

BGC’s earnings for 2016 show that Newmark’s capital markets group generated $104.7 million in revenues last year, up 43 percent from 2015. Revenues for leasing services, however, declined 11 percent year-over-year to $144.5 million.

In Los Angeles, the firm made waves last year when it hired capital markets bigwig Kevin Shannon and his large team from CBRE.

A representative for Newmark was not immediately available for comment, but company CEO Barry Gosin said in a statement released with the annual earnings that the brokerage expects low interest rates and steady GDP growth to provide a boost in 2017.

“As our recently hired brokers ramp up their productivity, and as we continue to execute our strategy, we expect to grow our revenues and profits faster than the overall industry going forward,” Gosin said.

It’s not clear what an IPO would mean for Newmark in Los Angeles, but if rival brokerage Cushman & Wakefield’s plans are any indication, the company could make some big moves to make it more attractive to investors.

Industry observers have speculated Cushman is headed for a public offering ever since it was merged with Chicago-based brokerage DTZ, which is backed by private equity group TPG. The company has tightened its belt through layoffs, but also expanded with the acquisition of Massey Knakal Realty Services and poaching big-time dealmakers Doug Harmon and Adam Spies from Eastdil Secured. In Los Angeles, the brokerage has been on a hiring spree, recently nabbing Brandon Gill, Brandon Burns and Jae Yoo from CBRE — a team of brokers responsible for many high-profile development deals in the Arts District.


Related Articles

arrow_forward_ios
Deal of the Art: Chen gets $31.5M for Hollywood gallery
Deal of the Art: Chen gets $31.5M for Hollywood gallery
Deal of the Art: Chen gets $31.5M for Hollywood gallery
Kidder Mathews taps CIM Group exec to lead LA operations
Kidder Mathews taps CIM exec to lead LA operations
Kidder Mathews taps CIM exec to lead LA operations
808 S. Broadway and Steve Needleman of Anjac Fashion Buildings (Google Maps, Getty)
Downtown LA’s biggest rentals set for Fashion District
Downtown LA’s biggest rentals set for Fashion District
LTC Properties CEO Wendy Simpson (Getty)
Senior housing mortgage REIT puts $46M into Q3 deals
Senior housing mortgage REIT puts $46M into Q3 deals
PS Business Parks CEO Mac Chandler and new CFO Adeel Khan (PS Business Parks, LinkedIn via Khan)
PS Business Parks taps former Rexford exec as CFO
PS Business Parks taps former Rexford exec as CFO
Councilmember Joe Busciano and Council President Nury Martinez (Getty, Busciano)
LA delays vote on strict vaccine requirement for indoor spaces
LA delays vote on strict vaccine requirement for indoor spaces
SoLa Impact founder and CEO Martin Muoto, whose firm plans an apartment complex in Park Mesa Heights (Google Maps, SoLa Impact)
SoLa Impact plans 195-unit rental complex in Park Mesa Heights
SoLa Impact plans 195-unit rental complex in Park Mesa Heights
LA County Board of Supervisors. From left to right: Holly J. Mitchell, Janice Hahn, Sheila Kuehl, Kathryn Barger and Hilda L. Solis (Getty, Board of Supervisors)
LA County commercial landlords can’t evict tenants just yet
LA County commercial landlords can’t evict tenants just yet
arrow_forward_ios

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

Loading...