(This story has been updated to include Gerald Eve commentary on how the business will operate.)
American real estate advisory group Newmark has completed its acquisition of UK brokerage Gerald Eve, in a transaction first revealed by CoStar News that propels it into the major league in the UK.
Newmark has confirmed it has bought "top UK-based real estate firm Gerald Eve", ending months of speculation since CoStar News first revealed the talks in August last year.
In a note to clients today, the latter's Simon Prichard confirmed he will remain on Gerald Eve’s executive board as senior partner, with a priority to "unite our UK footprint with Newmark’s industry-leading infrastructure, technology and sector expertise to deliver even greater value to you and your business".
He added that "beyond this, very little will change" with the company now branded as "Gerald Eve, a Newmark company".
He continued: "Our organisational and local leadership structure will remain unchanged."
Gerald Eve was one of the last remaining independent partnership brokers in the UK and several market sources had indicated that the transaction by listed adviser Newmark had been knocked off course by wider US concerns about the UK following the Liz Truss government's mini Budget in September.
Gerald Eve operates from nine UK offices across multiple business lines and property types, with particular strength in capital markets, corporate real estate advisory, planning and development, tenant representation, landlord leasing and valuation.
Newmark said the transaction provides it with "added depth and breadth of services, augmenting its expansion internationally, including recent acquisitions of investment sales and leasing advisory firms BH2 and Harper Dennis Hobbs, and Paris-based flexible office subsidiary Deskeo".
It added: "With the acquisition of Gerald Eve, Newmark is positioned to be a market leader in office, logistics and retail in the UK and Europe."
It said that with Doug Harmon and Adam Spies recently joining Robert Griffin and Kevin Shannon as co-heads of Newmark’s US capital markets business, the company is well-positioned to expand its capital markets business internationally.
“Gerald Eve is a market-leading adviser in the UK,” said Barry Gosin, Newmark's chief executive. “Gerald Eve adds momentum to our goal of having more than 10% of Newmark’s revenue generated from outside of the United States by 2025. The closely aligned values and culture of Newmark and Gerald Eve position this combination for continuity and undisputed industry expertise.”
Simon Prichard, senior partner, Gerald Eve, said: “Joining a top global commercial real estate services company creates significant growth opportunities for Gerald Eve’s clients and our people. For almost 100 years we have prided ourselves on our market expertise and commitment to client service and, following record revenue in the latest financial year, Newmark’s backing will further strengthen our capability to operate at the top of our game."
Gerald Eve's clients include many of the companies listed in the FTSE 100 Index, as well as real estate investors, private equity, corporate occupiers and development firms across multiple property types, with particular strength in the industrial, office and alternative sectors.
In fiscal year 2022, it generated net revenues of £92.7 million (or $111.4 million using current exchange rates). Over half of 2022 net revenues were from management services businesses.
Simon Prichard will continue to serve as senior partner of the business post-closing, alongside managing partner Simon Rees.
The acquisition unites one of the leading names in US brokerage with one of the UK's best-known and largest real estate advisers. Gerald Eve employs around 600 staff across its nine UK offices.
Newmark generated revenues of approximately $2.7 billion for the year ending 31 December, 2022. Its company-owned offices and its business partners, operate from approximately 180 offices with nearly 6,700 professionals around the world.
Nasdaq-listed Newmark was the largest US brokerage firm without an independent operation in the UK until 2019 but has been on a major acquisitions drive here since ending its 15-year alliance with Knight Frank in 2020.
CoStar News revealed it was in talks in December 2021 to buy BH2, the company led by Tony Gibbon that is one of London's best-known investment practices. The BH2 business was acquired on 1 April and operates as Newmark BH2.
The move recent Newmark acquisitions, hires and agreements across global markets, including France, Germany, Poland, Hungary, Hong Kong and Dubai. Newmark bought UK retail specialist Harper Dennis Hobbs in 2019. Newmark also owns global flex office provider Knotel.
The acquisition of Gerald Eve would give Newmark critical mass in the UK and represents a major statement of intent. There is not a great deal of overlap with BH2 or Harper Dennis Hobbs, with Gerald Eve particularly noted for its strengths in industrial and regional offices, planning and advisory services.
Market sources said Newmark has also indicated an interest in building a debt brokerage business and rumours abound of discussions with various high-profile individuals.