CB Richard Ellis Group, Inc. (NYSE:CBG) and Alfa Capital Partners (ACP) have 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 ft² 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."
Source: CB Richard Ellis