Savills, a London-based real estate brokerage, has agreed to purchase New York’s Eastdil Secured Holdings in a transaction valued at $1.1 billion, including debt. The acquisition was announced Thursday and will be financed through a combination of debt and new share issuance. As part of the deal, Eastdil’s existing shareholders will hold approximately 16 percent of the combined company.
Eastdil Secured has established itself as a real estate investment bank, advising major investors on sales, acquisitions, and financing of complex property transactions. The firm gained prominence after many Wall Street banks reduced their real estate advisory roles following the global financial crisis, enabling Eastdil to carve out a unique position globally and in the New York market.
For Savills, one of the largest real estate brokers in Europe and Asia, the acquisition marks a significant expansion into the U.S. real estate sector. The company previously entered the American market in 2014 with its purchase of the leasing advisory firm Studley. The Eastdil deal will broaden Savills’ capabilities, particularly in debt advisory, which has seen growth in recent years among real estate brokerages.
Savills CEO Simon Shaw noted that expanding in the U.S. market was a key motivation behind the acquisition. The deal positions Savills to better compete with established American firms such as CBRE and JLL in the commercial real estate brokerage and advisory space.
Eastdil’s expertise and client relationships in the investment banking side of real estate complements Savills’ existing services, creating a more integrated platform for global real estate transactions. The transaction is expected to close later this year, subject to customary approvals.