CBRE Group, Inc. (CBG), the Los Angeles-based commercial real estate services company, intends to divest 10 shopping malls in France and Belgium, per a report by the French daily newspaper, Le Figaro. CBRE is expected to raise $1.4 billion (1.2 billion euros) through this divestiture.
The real estate fund, for which CBRE was operating the malls, is slated to mature in 2015 and hence payment is due to investors. As a result, the firm has decided to divest the malls. The shopping centers, which are likely to be divested, include La Vache Noire and Mayol in France and two malls in Belgium.
Notably, CBRE’s Global Investment Management segment offers investment management services to clients who seek to generate returns and diversification through direct and indirect real estate investments across North America, Europe and Asia. In fourth-quarter 2014, the company’s assets under management rose $3.8 billion year over year to $90.6 billion, aided by higher acquisition activities as well as increased property and securities values. However, revenues at its Global Investment Management segment declined 25.5% due to a decrease in carried-interest revenues.
Currently, CBRE carries a Zacks Rank #3 (Hold).
Investors interested in the real estate sector may consider stocks like Altisource Residential Corporation (RESI), Henderson Land Development Co. Ltd. (HLDCY) and Alexander & Baldwin, Inc. (ALEX). While Altisource Residential sports a Zacks Rank #1 (Strong Buy), both Henderson Land Development and Alexander & Baldwin hold a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CBRE GROUP INC (CBG): Free Stock Analysis Report
ALEXANDR&BALDWN (ALEX): Get Free Report
HENDERSON LAND (HLDCY): Get Free Report
ALTISOURCE RESI (RESI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research