US developer CBRE Group has moved into the UK build-to-rent (BTR) sector with the acquisition of Telford Homes for 拢267.4m (鈧�297m).
CBRE, through its real estate development business Trammell Crow Company, is offering to pay Telford shareholders 拢3.50 for each share, representing an 11.1% premium to the share鈥檚 last closing price.
CBRE said the acquisition positions Trammell to 鈥漮pportunistically expand鈥� its development platform over time in the UK and Europe.
Established in 2000, AIM-listed Telford currently has a development in-process portfolio of about 拢1.32bn.
Andrew Wiseman, chairman of Telford Homes, said the offer from CBRE represents fair value for shareholders in light of Telford Homes鈥� market positioning, the current operating environment and the underlying value of Telford Homes鈥� site portfolio and pipeline.
鈥淭he board remains confident in the long-term prospects of the business, however the board also recognises the risks posed by the political and macro-economic environment, as well as the already stated impact on the group鈥檚 short- and medium-term profitability from the implementation of its new build to rent strategy, which is lower margin in nature鈥� Wiseman said.
Bob Sulentic, president and chief executive officer of CBRE, said: 鈥淭he UK is in the early stages of a secular shift toward institutionally owned urban rental housing, similar to what we have seen in the US over the last two decades.
鈥淭elford is well positioned to lead this trend, and their more than 300 talented professionals operating in London are a great addition to our company.鈥�
The acquisition of Telford also positions Trammell to opportunistically expand its development platform over time in the UK and Europe, CBRE said.
