CBRE Buys Telford Homes For BTR Expansion

Telford Homes Plc has announced the sale of its business to US real estate company CBRE Group Inc.

CBRE are paying approximately £267m for Telford Homes and say that the acquisition is designed to give them a presence in the UK’s build to rent (BTR) business. It is planned that Telford Home will operate as a standalone business within CBRE’s existing Trammell Crow Company real estate development company.

Established in 2000, Telford Homes has grown to become one of London’s largest residential developers and currently has a development in-process portfolio of £1.32bn. In recent years Telford Homes has aligned its business to focus on the UK’s growing BTR market.

Bob Sulentic, President and Chief Executive Officer of CBRE, said: “Telford Homes gives us a compelling opportunity to build on the success of Trammell Crow Company. The UK is in the early stages of a secular shift toward institutionally owned urban rental housing, similar to what we have seen in the US over the last two decades. Telford Homes is well positioned to lead this trend, and their more than 300 talented professionals operating in London are a great addition to our company.”

This acquisition is interesting not so much for the acquisition in itself but for the origin of the buyer. Build to rent is a relatively immature part of the property market in the UK compared to the US where it is well established. This transaction suggests US investors see significant potential in the UK BTR market over the coming years. It might also be interesting to see what ideas Tramwell Crow bring from across the Atlantic.

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Source London Stock Exchange
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