CBRE lowers SPAC IPO valuation target to $350M
Blank-check company aims to merge with growing firm
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.
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.