Real estate firms complete merger to create ‘global, disruptive challenger brand’

GVA, one of the UK’s leading real estate advisory businesses whihc has offices in Leeds, Manchester and Liverpool, has been acquired by Canadian-headquartered commercial real estate services firm Avison Young.

Effective immediately, the two companies will combine under one unified brand: Avison Young. The deal completion will see 5,000 professionals in 120 offices in 20 countries combine to create a “global, disruptive challenger brand.”

Mark Rose, Chair and CEO of Avison Young, announced that the deal had completed today. Avison Young said that the acquisition establishes the business as the only privately held, principal-led, global, full-service commercial real estate services firm.  As a result of the merger, Avison Young increases its revenue to 25 times its 2008 level to approximately C$1bn.

The combination also establishes Avison Young among the top five commercial real estate advisory businesses in the UK.

Avison Young also announced today the post-acquisition leadership team: Avison Young Principal and U.K Managing Director Jason Sibthorpe becomes Principal and President, UK; GVA CEO Gerry Hughes becomes Principal and Managing Director, UK and Managing Director, Global Consultancy; and GVA Chair Andy Mottram becomes Principal and Managing Director, Europe.

As a result of the transaction, Avison Young now has approximately 5,000 real estate professionals in 120 offices in 20 countries.

Rose said: “This acquisition represents another milestone in our global expansion strategy, and the combination will better position Avison Young to serve our clients across the world,

“Furthermore, the acquisition establishes Avison Young as the global, disruptive challenger brand. We are now 5,000 strong, having nearly doubled our size and ability to provide clients with whatever they need, wherever in the world they need it. In GVA, Avison Young has added a like-minded UK real estate leader – a company that brings a partnership culture formed during more than 200 years in business.”

Rose continues: “The acquisition increases our scale and presence, expands our global talent pool and reach, and enhances the breadth and balance of our services. Most importantly, the combination increases the resources that we can invest in innovation to keep our clients ahead of the curve.”

GVA brings to Avison Young a broad portfolio of national and international clients, including UK public institutions, multinational corporations, major space users, developers, owners, lenders and investors.

The acquisition includes GVA Worldwide – an international organisation of licensed affiliate commercial real estate advisory companies with offices in 20 countries. GVA has 1,500 employees in 15 offices in the UK, Ireland and Poland alone, and is a founding member and majority shareholder of GVA Worldwide.

Hughes said: “Overnight, the ambitious growth strategy that I set out for our business three years ago has been achieved, and we can now serve our clients as a global full-service business, with an enviably strong consultancy and transactional offer

“The opportunities for our combined platform are vast, and I see one of the biggest growth areas stemming from the increasing trend for clients to seek strategic multi-consultancy real estate advice, which demands market intelligence, expertise and connections. The ability to provide such advice on a global scale is extraordinary and I look forward to helping to deliver that potential.”

In connection with the transaction, Avison Young has optimized its capital structure through a recapitalisation. The acquisition and the refinancing have been funded through a combination of cash on hand, committed financing from Credit Suisse, CIBC and BofA Merrill Lynch, and additional common equity, including participation by Caisse de dépôt et placement du Québec (CDPQ).

Credit Suisse and KPMG LLP acted as Avison Young’s financial advisors in the acquisition of GVA; and Gowling WLG (UK), DLA Piper LLP (US and UK) and Stikeman Elliott LLP (Canada) served as Avison Young’s legal advisors.

Rose added: “This is a very exciting and memorable day in the history of Avison Young. As a result of the acquisition, our combination fortifies the pillars of our culture – honesty and integrity, investment in people, a Principal-owned model, a lack of service-line silos, and best-in-class internal and external resources to provide exemplary service to clients. We look forward to working with our new clients, colleagues and partners around the world.”