When a $563 million cash deal to buy part of Cushman & Wakefield closes at the end of January, the Manhattan-based commercial brokerage giant will be able to do what it couldn’t do before — grow.
IFIL, the investment group of the Italian Agnelli family, bought a 67.5 percent stake in the commercial brokerage firm in a deal first announced in December. The deal allows the Italian investment group to purchase up to 75.6 percent of the company at a later time.
Under the terms of the deal, IFIL will assume all of investment firm Rockefeller Group International’s debt, replacing Rockefeller as controlling shareholder. Because the acquisition will be primarily financed with cash with no additional debt assumed by Cushman & Wakefield, the transaction leaves the brokerage well-positioned for future acquisitions, according to executives.
Cushman & Wakefield seeks to expand in Europe and Asia, as well as grow in the mortgage brokerage business in the United States, executives said.
The expanding global footprint will affect Cushman & Wakefield’s Manhattan-based brokers the most, partly due to the increasing amount of foreign capital being invested in New York.
“For our New York brokers, who are the most focused globally of the brokers in our system, it’s an exciting moment and they have a strong partner supporting the management division,” said Bruce Mosler, CEO of Cushman & Wakefield.
The deal comes after top competitor CB Richard Ellis announced a merger with Trammell Crow Company and recently grabbed a spot in the S & P 500 ranking — the first commercial brokerage to make the list.
Cushman & Wakefield is a major player in India, with 700 brokers in the market, and it has 800 brokers in China. It will open additional offices in India and China this year.
According to IFIL CEO Carlo Sant’Albano, IFIL will help Cushman & Wakefield grow their business.
“There will be opportunities as regional players continue to look at the benefits of being part of the global platform,” Mosler said.