LOS ANGELES – February 20, 2015 – CBRE Global Investors completed $17.3 billion in transactions globally in 2014, including $9.2 billion in acquisitions, as the firm raised new capital for funds and separate accounts, and $8.1 billion in dispositions as it monetized certain funds and realized value for investor clients. This acquisitions volume represents a 55 percent increase over 2013 and the firm’s largest volume since 2007.
“With extensive on-the-ground real estate expertise in 21 countries around the globe, we were very proactive portfolio managers in 2014 to serve the best interests of our clients,” said Matt Khourie, Chief Executive Officer of CBRE Global Investors. “In conjunction with our strong 2014 capital raising, we were very successful sourcing and executing on compelling strategic opportunities to invest that capital. At the same time, we also took advantage of a healthy sales environment with strong buyer demand to effectively dispose of assets for the benefit of our investors.”
The firm was especially active in Europe with over half of the global transactions executed in that market. Total transaction activity in Europe totaled $10.0 billion and was concentrated in the UK, the Netherlands and Spain. Over 50 percent of all European transactions were in the retail sector.
“We saw a broad range of acquisition and sale opportunities across Europe as many of the region’s economies have been recovering,” said Pieter Hendrikse, CEO EMEA, CBRE Global Investors. “We disposed of non-strategic assets in line with investor requirements and fund cycles and were successful in deploying capital across a wide range of stock selection criteria.”
In the United States, transactions totaled $5.6 billion.
“Encouraged by improving fundamentals in our targeted markets in the United States, we actively invested primarily in the office and multifamily sectors with an emphasis on markets that have a strong technology focus, as well as those that appeal to prospective tenants due to their lower costs and favorable business climate,” Khourie said.
Transaction volume in Asia totaled more than $1.7 billion in 2014.
CBRE Global Investors raised $8.6 billion of capital in 2014 in its non-securities businesses, compared to $5.0 billion in 2013 and $3.7 billion in 2012. This was driven by considerable growth from clients in Europe, the Middle East, and Asia who responded to CBRE Global Investors’ investment performance by awarding new mandates. CBRE Global Investors expects to continue its investment momentum in 2015.
“We are well-positioned to continue taking advantage of opportunities that meet the criteria of our various investment vehicles globally as we see most markets continue to recover,” Khourie said.
About CBRE Global Investors
CBRE Global Investors is a global real estate investment management firm with $90.6 billion in assets under management* as of December 31, 2014. The firm sponsors investment programs across the risk/return spectrum for investors worldwide.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBG). It harnesses the research, investment sourcing and other resources of the world’s premier, full-service commercial real estate services and investment company for the benefit of its investors. CBRE Group, Inc. has more than 52,000 employees in more than 370 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com.
*Assets under management (AUM) refers to the fair market value of real estate-related assets with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice, and which generally consist of investments in real estate; equity in funds and joint ventures; securities portfolios; operating companies and real estate-related loans. This AUM is intended principally to reflect the extent of CBRE Global Investors' presence in the global real estate market, and its calculation of AUM may differ from the calculations of other asset managers.