Apollo Group’s $9 billion purchase of Realogy last month will not likely have a huge impact on its 300,000 brokers on a day-to-day basis.
However, heads of Manhattan-based brokerages that fall under Realogy’s corporate umbrella — including Coldwell Banker Hunt Kennedy, Century 21 New York Metro, the Corcoran Group and Sotheby’s — said they believe the purchase by the private equity firm will mean more sales activity.
“Long term, I’m encouraged by the new ownership,” said Michael Simon, CEO and president of Century 21 New York Metro. “We hope that a firm like Apollo will understand the need to continue building a trophy brand like Century 21, especially in a trophy market like New York City.”
According to Coldwell Banker Hunt Kennedy CEO David Michonski, Apollo Group has a Wall Street mindset, which will mean more acquisitions by late spring.
“They will be making acquisitions; they don’t believe in organic growth,” Michonski said. “The Coldwell Banker brand, the least active in acquisitions, will become very active,” Michonski predicted.
But before that acquisition activity takes place, Apollo is likely to shed some of the firms it has acquired, according to analysts.
Apollo has taken on Realogy’s debt of $2.4 billion. Realogy was the former real estate division of Cendant Corp., which spun off into its own public company last year.