JLL explores sale of China property management wing

Business is estimated to be worth around $500M

JLL CEO Christian Ulbrich. (Getty)
JLL CEO Christian Ulbrich. (Getty)

JLL is considering offloading one of its global businesses.

The Chicago-based firm is exploring a sale of its China property management business, which is estimated to be worth at least $500 million, Bloomberg News reported. JLL is working with an advisor on the potential sale, which would not include its brokerage or valuation business in the country.

The potential sale has drawn some interest from other property management firms and investors, according to the report. JLL could still decide to retain an interest in the business.

JLL generated about $992 million in revenue through its services in Greater China in 2020, roughly a third of all revenue it generated in the Asia Pacific region.

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Globally, JLL generated $16.6 billion in revenue last year, around 58 percent of which came from property management services. The firm saw earnings fall by nearly a quarter last year to $860 million, largely due to a decline in fees from leasing services.

The firm cut jobs in its New York capital markets group last summer, then slashes another 2,000 jobs nationwide in the fall. JLL saved about $330 million via salary cuts, layoffs and government aid.

The company’s shares dipped below $100 last year, the first time that’s happened since 2016, but have since recovered. They’re now trading for upwards of $180 per share.

[Bloomberg News] — Dennis Lynch