CBRE Group, Inc. (CBG) disclosed the completion of the previously announced acquisition of the Germany-based technical real estate consulting firm, VALTEQ Gesellschaft mbH and its subsidiaries. Notably, shares of the company rose 1.34% during the trading session on Mar 4, following this announcement.
The deal broadened CBRE Group’s consultancy platform in Germany and diversified its service offerings. The deal also brought on board VALTEQ’s team of professionals comprising civil engineers, architects, economists, geologists and service technicians.
As a matter of fact, CBRE Group has been actively engaged in deals for expanding business on the national and international platform. Earlier last month, as part of its effort to boost the cross-border Global Corporate Services offering, CBRE Group penned a renewal and expansion deal with Bank of America Merrill Lynch (‘BofAML’) of Bank of America Corp. (BAC). Besides providing services to BofAML’s business across Latin America, Asia Pacific and Europe, the Middle East and Africa, the company will now offer services to BofAML’s operations in South Africa and its Enterprise Services in Taiwan.
With market conditions continuing to improve, we believe that such opportunistic acquisitions and contract expansions would serve as growth drivers for CBRE Group. However, currently we believe that the regulatory limits on Government-Sponsored Enterprises’ (GSEs) lending would continue to pressurize revenue and profits for the commercial mortgage brokerage business of this Zacks Rank #4 (Sell) stock going forward.