Leading diversified professional services and investment management
company, Colliers (NASDAQ and TSX: CIGI), announced today it has
entered into a definitive agreement to invest in Rockwood Capital,
LLC (“Rockwood”), a leading US real estate investment management
firm with more than $12 billion of assets under management. The
transaction is subject to customary closing conditions and
approvals and is expected to close in the third quarter of 2022.
Financial terms of the transaction were not disclosed.
Headquartered in New York, with offices in Los
Angeles and San Francisco, Rockwood specializes in equity and
credit investments across multifamily, office, mixed use, life
science, hospitality, and retail asset classes across North
America. Rockwood’s history dates to the early 1990s when the
firm’s founders served as real estate advisors to the Rockefellers,
Olayans, and other prominent, global investors. Since then,
Rockwood’s long tenured and experienced investment team has
delivered superior returns and excellent client service through
numerous market cycles. Rockwood invests across the capital stack
through its series of flagship closed-end value-add,
core/core-plus, credit, and long-term development vehicles.
Rockwood’s investors include many of the world’s largest public and
private pension plans, sovereign wealth funds, endowments,
foundations, insurance companies, and high-net worth individuals
and their families.
Colliers will acquire a 65% stake in Rockwood,
with the balance of the equity retained by Rockwood’s senior
leadership team who will continue to lead the business under the
“perpetual partnership” model with Colliers, providing full
alignment, long-term stability, and orderly succession over time.
Upon completion, Colliers expects the annual run rate of management
fee revenue to be between $70 and $75 million and operating results
to be significantly accretive.
“Our partnership with Rockwood will expand our
operations in the US and add several new asset classes and
strategies, including excellent capabilities in the rapidly growing
real estate credit space,” said Zach Michaud, Co-Chief Investment
Officer of Colliers. “’We are excited to partner with Rockwood’s
strong leadership team who have had a long and distinguished track
record of success. We are looking forward to capitalizing on the
many synergies with our existing investment management platforms
and our global real estate services business. With private real
estate benefitting from macro tailwinds, we anticipate a continued
increase in investor allocations to high-quality firms like
Rockwood. We also expect this partnership to benefit from the
combined limited partners across our entire platform due to
enhanced product selection, world-class expertise, and top-tier
risk-adjusted returns.”
“This is the latest step in our ambitious growth
strategy to build a world-class investment management platform
within Colliers. The addition of Rockwood demonstrates our
continued focus on building scale, expanding on the success of
Harrison Street and Colliers Global Investors, executing on the
recently announced transaction with Basalt, and capitalizing on the
outstanding fundraising momentum we have experienced over the past
several years. Rockwood’s values and culture align strongly with
ours and we are delighted to welcome this exceptional team of
professionals into our organization. Colliers is positioned as one
of the world’s leading alternative investment managers with a
combined $77 billion in AUM once all announced transactions are
completed,” said Jay Hennick, Chairman and Chief Executive Officer
of Colliers.
“Colliers is one of the most respected names in
real estate globally. Their investment in Rockwood is a
recognition of the strength of our franchise, the talent of our
professionals, and the positive contributions that we have made to
the communities in which we have invested over the past three
decades. Colliers shares our commitment to continuously add
value for our properties and for our investors. This mission
is greatly enhanced by partnering with the talented team at
Colliers,” said Tyson Skillings, Rockwood’s Managing
Partner.
David Becker, Rockwood’s Managing Partner
further commented, “We are particularly attracted to Colliers’
enterprising culture, decentralized operating model, significant
inside ownership, and impressive performance over many years. We
are confident our new partnership will allow us to leverage
Colliers’ global platform to strengthen our capabilities while
allowing us to remain an entrepreneurial and nimble steward of our
investors’ capital.”
In connection with this transaction, Berkshire
Global Advisors acted as financial advisor and Kirkland & Ellis
acted as legal advisor to Rockwood. Sidley Austin acted as legal
advisor to Colliers.
About Colliers
Colliers (NASDAQ, TSX: CIGI) is a leading
diversified professional services and investment management
company. With operations in 62 countries, our 17,000 enterprising
professionals work collaboratively to provide expert real estate
and investment advice to clients. For more than 27 years, our
experienced leadership with significant inside ownership has
delivered compound annual investment returns of 20% for
shareholders. With annual revenues of $4.3 billion and $57 billion
of assets under management, Colliers maximizes the potential of
property and real assets to accelerate the success of our clients,
our investors, and our people. Learn more
at corporate.colliers.com,
Twitter @Colliers or LinkedIn.
About Rockwood
Rockwood Capital, LLC is a leading private real
estate investment firm with offices in Los Angeles, San Francisco,
and New York City. Since inception, the firm has managed funds and
separate accounts on behalf of over 130 institutional investors,
including public and private pension funds, sovereign wealth funds,
endowments, foundations, insurance companies, and high-net worth
individuals. Rockwood and its principals have invested in over $36
billion of real estate on behalf of clients through value-add
funds, credit funds, and separate accounts.
For more information, please visit
https://www.rockwoodcap.com/
Forward-looking Statements
This press release includes forward-looking
statements. Forward-looking statements include the Company’s
financial performance outlook and statements regarding goals,
beliefs, strategies, objectives, plans or current expectations.
These statements involve known and unknown risks, uncertainties and
other factors which may cause the actual results to be materially
different from any future results, performance or achievements
contemplated in the forward-looking statements. Such factors
include: economic conditions, especially as they relate to
commercial and consumer credit conditions and consumer spending,
particularly in regions where our business may be concentrated;
commercial real estate property values, vacancy rates and general
conditions of financial liquidity for real estate transactions;
trends in pricing and risk assumption for commercial real estate
services; the effect of significant movements in average
capitalization rates across different property types; a reduction
by companies in their reliance on outsourcing for their commercial
real estate needs, which would affect revenues and operating
performance; competition in the markets served by the Company; the
ability to attract new clients and to retain major clients and
renew related contracts; the ability to retain and incentivize
producers; increases in wage and benefit costs; the effects of
changes in interest rates on the cost of borrowing; unexpected
increases in operating costs, such as insurance, workers’
compensation and health care; changes in the frequency or severity
of insurance incidents relative to historical experience; the
effects of changes in foreign exchange rates in relation to the US
dollar on the Company’s Canadian dollar, Euro, Australian dollar
and UK pound sterling denominated revenues and expenses; the impact
of pandemics on client demand for the Company’s services, the
ability of the Company to deliver its services and the health and
productivity of its employees; the impact of global climate change;
the impact of political events including elections, referenda,
trade policy changes, immigration policy changes, hostilities and
terrorism on the Company’s operations; the ability to identify and
make acquisitions at reasonable prices and successfully integrate
acquired operations; the ability to execute on, and adapt to,
information technology strategies and trends; the ability to comply
with laws and regulations related to our global operations,
including real estate and mortgage banking licensure, labour and
employment laws and regulations, as well as the anti-corruption
laws and trade sanctions; and changes in government laws and
policies at the federal, state/provincial or local level that may
adversely impact the business.
Additional information and risk factors are
identified in the Company’s other periodic filings with Canadian
and US securities regulators (which factors are adopted herein and
a copy of which can be obtained at www.sedar.com). Forward looking
statements contained in this press release are made as of the date
hereof and are subject to change. All forward-looking statements in
this press release are qualified by these cautionary statements.
Except as required by applicable law, Colliers undertakes no
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise.
Non-GAAP Measures
We use the term assets under management (“AUM”)
as a measure of the scale of our Investment Management operations.
AUM is defined as the gross market value of operating assets and
the projected gross cost of development properties of the funds,
partnerships and accounts to which we provide management and
advisory services, including capital that such funds, partnerships
and accounts have the right to call from investors pursuant to
capital commitments. Our definition of AUM may differ from those
used by other issuers and as such may not be directly comparable to
similar measures used by other issuers.
COMPANY CONTACT:
Christian Mayer Chief
Financial Officer (416) 960-9500
Colliers (NASDAQ:CIGI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Colliers (NASDAQ:CIGI)
Historical Stock Chart
From Jul 2023 to Jul 2024