CBRE lowers SPAC IPO valuation target to $350M

Blank-check company aims to merge with growing firm

CBRE CEO Robert Sulentic (iStock)
CBRE CEO Robert Sulentic (iStock)

CBRE Acquisition Holdings, a blank-check company formed by CBRE Group, has lowered the target deal size for its upcoming initial public offering to $350 million, according to a filing with the Security and Exchange Commission.

CBRE, the world’s largest real estate services firm, initially set the valuation goal for its special purpose acquisition company (SPAC) at $400 million. But according to a new document filed with the SEC on Friday, the company lowered its IPO size by $50 million, offering 35 million stakeholder aligned initial listing (SAIL) securities at a price of $10.

With its SPAC, CBRE aims to “identify and acquire a privately held company with significant growth potential,” according to a regulatory filing. The date of the IPO has yet to be made public. It’s subject to the completion of the registration statement.

Sign Up for the undefined Newsletter

Read more

Blank-check companies have become increasingly popular among real estate firms this year. SPACs have no underlying assets and are formed with the goal of merging with a target company and taking the company public.

Last month, Tishman Speyer formed a $300 million SPAC that aims to merge with a proptech company. Real estate investors Joseph Beck and Thomas Hennessy are looking to raise $175 million for their second blank-check company, PropTech Investment Corporation II, that seeks to merge with a real estate tech company with an enterprise value of $500 million or more.

CBRE’s new SPAC is led by Bob Sulentic, the firm’s president and CEO, and William Concannon, its global group president.