Private Equity Firms Tpg Pag Selling Shares Cushman Wakefield Worth Us31073 Mil
TPG and PAG Asia Capital, along with their affiliated funds, have announced their plans to sell all of their shares in real estate advisory services firm Cushman & Wakefield (C&W). The companies, based in Texas and Hong Kong respectively, are offering over 26.5 million ordinary shares of C&W for sale.
JP Morgan will be the sole underwriter for the public offering, which is expected to generate a total value of US$310.73 million based on the closing share price of $11.72 per share as of May 20. C&W will not receive any of the proceeds from this offering, as stated in the company’s announcement on the same day.
As of May 17, 2024, TPG and PAG held approximately 7.5% and 4.1% of C&W’s total outstanding shares, respectively. This marks the end of a decade-long ownership by the two firms, who, along with co-investor Ontario Teachers’ Pension Plan, acquired the London-based DTZ for an enterprise value of US$1.215 billion in June 2014. The following year, the consortium acquired Chicago-based C&W for US$2 billion.
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The merger of DTZ and C&W in 2015 cemented the company’s position as one of the largest players in the commercial real estate services sector, competing with the likes of CBRE and JLL, both of which are listed on the New York Stock Exchange (NYSE).
C&W made its initial public offering on the NYSE on August 1, 2018, offering 45 million ordinary shares at US$17 per share. Since then, its share price has fluctuated and closed at US$10.79 on May 24, 2024. The stock market was closed for Memorial Day on May 27.
In the first quarter of 2024, C&W reported a revenue of US$2.185 billion, down 3% from the previous year. However, the company’s net loss decreased from US$76.4 million to US$28.8 million.
In contrast, CBRE recorded a revenue of US$7.94 billion in the first quarter of 2024, up 7.1% from the previous year, with a net income of US$126 million, an increase of 8% from the previous year. JLL’s revenue for the same period was US$5.12 billion, up 9% from the previous year, while net income was US$66.1 million, a significant improvement from the loss of US$9.2 million in the previous year.
In other news, CDL has announced plans to sell its freehold strata units at Cititech Industrial Building and Citilink Warehouse Complex for $149 million.