Savills to buy real estate investment bank Eastdil Secured for €963m
Savills has agreed to acquired Eastdil Secured, the global real estate investment bank, for $1,112.5m (€962.7m).
Eastdil Realty was founded in New York in 1967 and started expanding globally after Roy H March joined the company 11 years later. Wells Fargo acquired the company in 1999 and merged it with Secured Capital Corp in 2006.
In 2019, March and the firm's management team led Eastdil Secured's recapitalisation, in partnership with Guggenheim, Temasek and Wells Fargo, solidifying its position as a global real estate investment bank.
Eastdil offers advice on mergers and acquisitions, continuation vehicles and joint ventures, sales, debt placement, structured credit and loan sales to investors around the world.
The company is jointly led from New York, Santa Monica and London and has 20 offices globally, including locations in Dublin Dubai, Frankfurt, Milan, Paris and Hong Kong.
"This acquisition marks an important milestone for our business, our people, and our clients. Eastdil Secured is a global leader in real estate investment banking, operating across the United States, Europe, and Asia, and advising on some of the industry’s most complex and high-value transactions," said Mark Reynolds, managing director of Savills Ireland.
"Bringing together Savills Capital Markets expertise with Eastdil Secured’s investment banking capabilities will create a powerful platform for our clients in Ireland, offering a comprehensive suite of equity, debt, and strategic advisory services."
Savills said Eastdil is highly complementary to its broader real estate services offering, and the combined group will be the umber two advisory firm globally for prime commercial real estate transactions above $100m.
Eastdil Secured will continue to operate its existing business model within Savills, as the group’s real Estate investment bank from completion of the deal and will maintain its three headquarters in New York, Santa Monica and London.
The Eastdil Secured leadership team and senior employees will all become shareholders in Savills through the receipt of consideration shares in exchange for their existing interests in Eastdil Secured.
March has been appointed executive chairman of Eastdil Secured with responsibility for client advisory, execution and long-term strategy, with president D Michael Von Konyenburg taking over as CEO and overseeing day-to-day operations.
“Throughout its history Eastdil Secured has developed strategic partnerships to better serve our clients and be the most relevant and trusted advisor in the real estate investment bankingindustry," said March.
"This transaction marks the beginning of a new chapter for Eastdil Secured, which will accelerate our growth, create opportunities for our team, and significantly enhance our ability to provide best-in-class real estate investment banking services for our valued clients globally.
"As part of Savills, Eastdil Secured will continue to serve as a trusted advisor and provide clients with unmatched capital markets and commercial real estate expertise, now with more resources as part of a larger organization with complementary geographic reach and advisory capabilities.
"The Savills team shares our commitment to excellence and our emphasis on discretion, collaboration, and insight driven execution. We look forward to continuing to grow and deliver for our partners as part of this industry-leading global platform”.
James McCaffrey will replace Von Kenyenburg as president and has been tasked with spearheading international growth from London, and both of them will join the Savills group executive board.
Commenting on the deal, Savills group CEO Simon Shaw said: “Eastdil Secured is an organisation we have worked with and admired for many years. It has a complementary geographical footprint and similar culture to our own.
Savills recently acquired The Building Construction Company. Pictured: Mark Reynolds, Managing Director, Savills Ireland, Karl O’Donovan, Director, The Building Consultancy, Orla Coyle, Director, Savills Ireland, Alan Baldwin, Managing Director, The Building Consultancy, Hugh Holt, Director, The Building Consultancy, Ken Mulligan, Director, The Building Consultancy.
"This acquisition is a significant step forward for both of us, bringing to the global investment community a much-needed choice of leading advisory partner to deliver a comprehensive suite of investment banking, strategic, financial, development, leasing and other “boots on the ground” property solutions.
"By acquiring a leading REIB provider, the improved breadth of our services and enhanced global footprint will create significant growth opportunities for the combined Group’s staff and significant value to our clients and shareholders alike”.
Photo: Mark Reynolds, Savills. (Pic: Fennell Photography)
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