CB Richard Ellis Group agreed to acquire Trammell Crow, a real estate investment management and property management firm, for $2.2 billion in cash, said Cal Frese, president of the Americas, CB Richard Ellis. The deal is expected to close by the first quarter 2007. Trammell Crow will be a wholly owned but independently operated subsidiary, distinct from CB Richard Ellis' investment management unit, CB Richard Ellis Investors, Mr. Frese said.
To help finance the deal, CB Richard Ellis will sell its 20% ownership in Savills PLC, a U.K. real estate property manager and agent and investment manager, through subsidiary Cordea Savills.
Robert E. Sulentic, chairman and CEO of Trammell Crow, will join CB Richard Ellis as group president. He will be responsible for the development and investment business as well as the entire company's Europe, Middle East, Africa and Asia-Pacific operations. He will report to Brett White, CB Richard Ellis Group president and CEO.