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The merger of global property consultancies Cushman & Wakefield and DTZ will create a $100-million (Rs 642-crore) entity in India. The size of the two merged consultancies in the country will be closer to CBRE’s annual revenue, a sector source said.
The merger will change the pecking order of property consultancies in the country. While US-headquartered Jones Lang LaSalle (JLL) occupies the top slot in revenues among international property consultancies in India at an estimated $250 million (Rs 1,600 crore), CBRE (also from the US) is pegged at $130 million (Rs 832 crore) in the country. The UK’s Knight Frank will come in the fourth slot in terms of its India revenues at $50 million (Rs 320 crore) at the current exchange rate.
Before the merger, the pecking order in India was: JLL, CBRE, Cushman, Knight Frank, Colliers International and DTZ. Following the deal, UK-based DTZ has been able to beat both Knight Frank and Colliers in the revenue ranking in the country.
The new company, which will operate under the Cushman & Wakefield brand, will have revenues of $5.5 billion globally and will manage 4 billion sq ft on behalf of institutional, corporate and private clients, both the companies said in a statement.
According to an executive in the know, who will lead the combined entity is yet to be decided. While Anshul Jain is the CEO of DTZ India, Sanjay Dutt is managing director of Cushman & Wakefield in India.
“The integration will take about three months,” said a source. US regulators will need to clear the merger deal. Reports indicated that the deal implied DTZ buying Cushman for $2 billion.
Brett White, who was the chairman of DTZ, will assume the role of chairman and CEO of the combined company. White had previously worked with CBRE as CEO.
According to the managing director of a property consultancy, the combined entity will give tough competition to JLL in India as it is a dominating player here.
“DTZ is elated to be merging under the prominent Cushman & Wakefield brand. The companies have remarkable complementary skills and reach in different geographies – New York, London, Shanghai. This will be a formidable combination,” said White in a statement.
“While the breadth and depth are important to serve clients, it’s not just about size. It’s also about local expertise and deep customer service, which are strong traits of Cushman & Wakefield and DTZ, and ultimately what will differentiate us going forward,” White said.
NEW PECKING ORDER IN INDIA
- JLL
- CBRE
- Cushman-DTZ
- Knight Frank
- Colliers
