CBRE Group, Inc. (NYSE:CBRE) has announced that it has completed the previously announced acquisition of Telford Homes Plc, a leading developer of multifamily residential properties in London.
Telford Homes, which is focused on middle-market, build-to-rent properties, will operate as part of Trammell Crow Company, CBRE’s wholly owned real estate development subsidiary. The acquisition expands Trammell Crow Company’s highly successful US development business into the UK market.
Build-to-rent is a fast-growing sector of the London housing market. This growth is being fueled by changing attitudes about renting versus ownership, greater affordability relative to for-sale housing and limited supply.
“We are excited about the opportunities that Telford Homes affords us,” said Bob Sulentic, president and chief executive officer of CBRE. “The UK is in the early stages of a secular shift toward institutionally owned urban rental housing and Telford Homes’ talented team positions us to lead this trend.”
“The alignment of our business models, people and culture – along with our shared commitment to partners, clients and local communities – makes this a natural fit,” said Jon Di-Stefano, chief executive officer of Telford Homes. “We now have enhanced capabilities to raise capital, acquire the best sites and deliver high-quality properties that meet rising demand for rental housing.”
Mr. Di-Stefano will continue to lead the Telford Homes business. Financial performance for Telford Homes will be reported within CBRE’s Real Estate Investments business segment.