Bangkok--Jan 10--CB Richard
CB Richard Ellis Group, Inc. (NYSE:CBG) today announced that it has acquired a majority interest in its affiliate in Japan, IKOMA CB Richard Ellis K.K.(IKOMA), enhancing the Company’s position in the rapidly recovering Tokyo real estate market.
IKOMA is a leading provider of commercial real estate services throughout Japan and holds the number one position in the Tokyo market. Founded in 1970 by its President, Mr. Tatsumi Hanaya, IKOMA is a full service real estate company that specializes in office leasing and investment brokerage. It has 800 employees in 20 offices, giving IKOMA the largest nationwide operations in Japan. In 2004, IKOMA concluded leasing and investment transactions valued at approximately $885 million and had more than 9 million sq ft of commercial property and corporate facilities under management.
CB Richard Ellis has held a minority ownership interest in IKOMA since 1999. Under the terms of the new arrangement, CB Richard Ellis will increase its ownership to 51%, with Mr. Hanaya and other IKOMA senior managers owning the balance. As part of the agreement, CB Richard Ellis will further increase its investment in IKOMA over time.
IKOMA will adopt the CB Richard Ellis brand name, and combine operations with CB Richard Ellis’ majority-owned operation in Tokyo. Together, the combined entity will create an enterprise with approximately $100 million in annual revenue and the dominant position in Japan.
“Our increased ownership position in IKOMA fits perfectly with our strategy of achieving pre-eminence in all of the world’s major business capitals,” said Brett White, President and CEO of CB Richard Ellis. “We also believe our investment is well timed. The Tokyo office market is clearly emerging from a pronounced downturn, with increased leasing and investment activity. The newly combined entity is well positioned to capture a significant share of market activity.”
“We are very pleased to strengthen our close association with CB Richard Ellis,” said Mr. Hanaya. “An even closer alignment will enable us to more fully capitalize on CB Richard Ellis’ global real estate services platform — the most extensive and highest quality in the world -- and its widely recognized, premier brand name. This will greatly benefit our clients, who are increasingly asking us to serve their needs outside Japan, and will further accelerate our growth as a company.”
Mr. Robert Blain, President of CB Richard Ellis’ Asia-Pacific operations, said: “Our 7-year partnership with IKOMA has proven to be mutually beneficial for both parties, and for our clients who have real estate needs on a pan-Asian basis. We are very excited about taking our relationship with IKOMA to the next level. We have gotten to know their people well. They are first-class professionals with excellent reputations and strong capabilities in the key business centres across Japan. With this transaction, Japan will be a cornerstone in our rapid growth throughout Asia.” End.