CB Richard Ellis & Alfa Capital Partners Announce CB Richard Ellis’ Acquisition of Remaining Shares in CB Richard Ellis Noble Gibbons
09 Aug 2006
CB Richard Ellis Group, Inc. (NYSE:CBG) and Alfa Capital Partners (ACP) today announced that CB Richard Ellis has acquired the remaining outstanding shares (49%) in CB Richard Ellis Noble Gibbons, one of Russia’s leading real estate services firms, from ACP’s investors and other shareholders. CB Richard Ellis had acquired a 51% ownership interest in Noble Gibbons in April of this year, and the entity was renamed CB Richard Ellis Noble Gibbons at that time.
The acquisition reflects CB Richard Ellis’ strategy of buying-in affiliate firms that are leaders in their regional markets, and achieving a pre-eminent market position in major business centers around the world. Noble Gibbons had been CB Richard Ellis’ affiliate in Russia since 1995, and has long been a leader in Moscow and other cities throughout Russia.
Founded in Moscow in 1994, the firm has 230 employees, including 115 property and facilities management personnel located at client premises. It provides a full range of real estate advisory and management services including: property management, office, retail and industrial agency, consulting and valuation, project management, and asset investment brokerage. In 2005, the firm completed sales and leasing transactions valued at approximately $233 million, and it manages more than 2.6 million square feet of commercial real estate.
Michael Strong, President of CB Richard Ellis’ Europe Middle East and Africa operations, said: “Noble Gibbons is an important addition to our capabilities in Europe, and a key building-block in the development and expansion of our resources across Central and Eastern Europe. This is an opportune time to integrate the business into our platform, as we increasingly offer occupiers and investors solutions on a pan-European basis.”
Alfa Capital Partners, a Moscow-based private equity and real estate investment firm, acquired its stake in Noble Gibbons on behalf of its investors in 2004 as part of its private equity investment strategy. ACP has been active in supporting Noble Gibbons’ management and its business development strategies.
“We have been very pleased with our investment in Noble Gibbons and the dedication and professionalism of its staff. The transaction is a reflection of the dynamic and rapidly developing Russian real estate market and the global trend towards consolidation of the real estate services industry,” said Alfa Capital Partners’ Chief Executive Officer Richard Sobel.
“Our integration with CB Richard Ellis has been very successful. CBRE is the industry’s premier brand name with a global platform that has already enabled us to facilitate the flow of capital into the Russian real estate market and to support our Russian clients as they seek investments abroad,” said Darrell Stanaford, Managing Director of CB Richard Ellis Noble Gibbons. “We benefited enormously from our relationship with ACP and our other shareholders, and thank them for the confidence they have shown in our business and people.”
CB Richard Ellis is the world’s largest commercial real estate services firm, with global revenues of $2.9 billion in 2005. The Company was responsible for more than $150 billion of property sales and leasing transactions on a global basis in 2005, and managed more than 1.0 billion square feet of commercial property worldwide (including partner and affiliate company portfolios) as of December 31, 2005.
About CB Richard Ellis
CB Richard Ellis Group, Inc. (NYSE:CBG), a FORTUNE 1000 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2005 revenue). With approximately 14,500 employees, the Company serves real estate owners, investors and occupiers through more than 200 offices worldwide (excluding affiliate and partner offices). CB Richard Ellis offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; investment management; appraisal and valuation; research and consulting. Founded in 1906, CB Richard Ellis marks a century of excellence in real estate services this year. Please visit our Web site at http://www.cbre.com/.
“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995:
The statements in this release regarding the acquisition of a majority interest in Noble Gibbons and other matters discussed in this news release that do not concern purely historical data, are forward-looking statements within the meaning of the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties, including, but not limited to, the ability of the parties to successfully integrate the operations of Noble Gibbons with CB Richard Ellis, and to grow its market share in Russia as well as other risks and uncertainties discussed in CB Richard Ellis’ filings with the Securities and Exchange Commission (SEC). Any forward-looking statements speak only as of the date of this release and, except to the extent required by applicable securities laws, CB Richard Ellis expressly disclaims any obligation to update or revise any of them to reflect actual results, any changes in expectations or any change in events. If CB Richard Ellis does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements. For additional information concerning factors that may cause actual results to differ from those anticipated in the forward-looking statements, and risks to CB Richard Ellis’ business in general, please refer to the Company’s SEC filings, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2005. This filing is available publicly and may be obtained off the company's website at http://www.cbre.com/ or upon request from the CB Richard Ellis Investor Relations Department at investorrelations@cbre.com.
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