London-based International real estate advisor Savills has completed the 100 per cent buy out of one of American’s leading independent commercial real estate service firms.
Acquiring New York-headquartered Studley Inc — formerly known as Julien J. Studley — will cost Savills up to $260m (£154m), allowing for a separate shares deal in the French management business of AOS Studley, and should receive regulator approval by this summer. The combined US business will be re-branded Savills Studley.
Founded in 1954, Studley has grown to provide the full spectrum of real estate advisory services for businesses in the industrial, legal, financial and education sectors from its 25 offices around the States. It underwent a management buyout in 2002 and has since been owned by its 139 partners. Prior to the latest take-over it employed 400 commissioned brokers and 175 support staff.
Studley’s top 500 clients are located across 9,000 North American sites with its landmark transactions including work on the Citicorp Center, Time Warner’s headquarters (pictured), and the New York offices of Cadwalader, Wickersham, one of America’s oldest law firms. In 2013 its£138m turnover generated pre-tax profits of £3.6m.
“We are delighted to complete this acquisition of Studley and are looking forward to growing the combined business in the United States,” commented Savills Plc chief executive officer, Jeremy Helsby.
“This deal brings the top US tenant representation brokerage brand into the Savills Group and complements our existing leading positions in the European and Asian markets. We are now well placed to provide exceptional service to clients in the world’s key locations.”
From the American firm, Mitchell S. Steir is joining Savills Studley as chairman and chief executive officer. “This deal represents a significant step for both firms and our clients,” he said. “As we join forces with the team at Savills, we are thrilled that we will have a stronger platform to continue our growth with a partner that shares our commitment to superior client service.”
In recent years the FTSE 250 listed Savills — which employs 25,000 staff in its 600 global offices — has focused on buying up small businesses in places where its presence was weak. Last year its Europe-based Cordea Savills investment management platform moved into the Asian market, acquiring the real estate-focused Tokyo merchant bank Merchant Capital KK. It also took full control of various small businesses in China.
