Acquisition

RNS Number : 8439H

Savills PLC

19 March 2015

 



19 March 2015

Proposed Acquisition of SEB Asset Management AG

BUILDS SCALE OF SAVILLS INVESTMENT MANAGEMENT PLATFORM

Savills plc ("Savills"), one of the world's leading real estate advisory firms, is pleased to announce the proposed acquisition of SEB Asset Management AG ("SEBAM"), a prominent German investment management firm, for up to €21.5m (£15.6m) in cash. The business will be combined with Cordea Savills, Savills existing investment management operation. Following the transaction, the combined business will be re-branded Savills Investment Management.

Founded 25 years ago and headquartered in Frankfurt, SEBAM is ultimately owned by Skandinaviska Enskilda Banken AB ("SEB AB"). SEBAM is based in Frankfurt and Singapore with 148 staff, and has approximately €10bn of real estate assets under management ("AUM") globally, within a variety of fund structures. At 31^st December 2014, approximately 40% of this AUM, €4bn, represented institutional funds with the remainder, approximately €6bn, being assets of a number of German Open Ended funds ("GOEF"), which are in the process of formal liquidation in accordance with the regulatory process governed by BaFin (the German Regulatory body). This process will continue under Savills ownership, and will be managed by Cordea Savills through its international investment management network, augmented by Savills broad real estate capabilities throughout Europe, the US and Asia.

The combination of Cordea Savills existing AUM of over €7bn with SEBAM will create a leading European investment management business with an initial combined AUM of approximately €15bn and an Asia Pacific platform with approximately €2bn AUM. This will enable Savills to broaden its offering to both international and domestic real estate investors. Alongside the transaction, Cordea Savills and SEB AB will enter into a co-operation agreement to provide real estate investment services to clients of the institutional and wealth management divisions of SEB AB.

For the year ended 31 December 2014, the turnover of SEBAM was €43.6m, and profit before tax was €8.1m (audited). SEBAMs gross assets were €42.1m.

The consideration will be funded from Savills existing cash and banking facilities.

The acquisition is subject to certain commercial and regulatory closing conditions including regulatory approval from BaFin and the expiry of the German and Polish merger control authorities' review periods. Subject to these approvals, the transaction is expected to close by the third quarter of 2015 and is expected to enhance Savills underlying earnings per share in the first year.

Jeremy Helsby, Group Chief Executive of Savills, said:

"SEB Asset Management is a high quality investment management firm and this transaction represents an exciting opportunity to create an enlarged Savills investment management business which will enhance our service to clients of the Group seeking investment opportunities by way of funds, managed portfolios and mandates in the key cities of Europe and the Asia Pacific region." 

For further information please contact:

Savills                                                                                                        Tel: [phone] 

Justin O'Connor CEO, Cordea Savills

Simon Shaw, Group Chief Financial Officer, Savills plc

Peter Hewer,  Tulchan Communications                                                        Tel: [phone]

 

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