CB Richard Ellis Buys Insignia Financial

Feb. 18, 2003
NEW YORK (Reuters) - U.S. real estate company CB Richard Ellis said on Tuesday it will buy rival Insignia Financial Group Inc. for $11.00 per share in cash, making the combined company the world's biggest commercial property manager. The transaction is valued at about $415 million, including repayment of net debt and redemption of preferred stock, and is subject to Insignia shareholders' approval and other conditions, the companies said. Insignia said it will try to sell certain real estate assets prior to the closing of the deal. Any amount it receives above $45 million for these assets will be paid to shareholders, up to an additional $1.00 per share of Insignia common stock. The combined company will operate as CB Richard Ellis and will have a portfolio of nearly 850 million square feet worldwide. The deal, expected to close in June, is also subject to the receipt of financing and regulatory approvals. To finance the deal, CB Richard Ellis will get up to $145 million in cash from Blum Capital Partners. CB Richard Ellis has also received a commitment from Credit Suisse First Boston for the necessary debt financing.

Voice your opinion!

To join the conversation, and become an exclusive member of Buildings, create an account today!

Sponsored Recommendations

Building Better Schools

Download this digital resource to better understand the challenges and opportunities in designing and operating educational facilities for safety, sustainability, and performance...

Tips to Keep Facility Management on Track

How do you plan to fill the knowledge gap as seasoned facility managers retire or leave for new opportunities? Learn about the latest strategies including FM tech innovations ...

The Beauty & Benefits of Biophilic Design in the Built Environment

Biophilic design is a hot trend in design, but what is it and how can building professionals incorporate these strategies for the benefits of occupants? This eHandbook offers ...

The Benefits of Migrating from Analog to DMR Two-Way Radios

Are you still using analog two-way radios? Download this white paper and discover the simple and cost-effective migration path to digital DMR radios that deliver improved audio...