Savills Magazine, Issue 61, 2008
Rock of ages
Savills is back on US soil with its acquisition of real estate investment banking firm Granite. An exciting phase of expansion lies ahead
The United States holds a 40 per cent share of the global property market and its capital inluences span worldwide. The acquisition of Granite Partners LLC was an important piece of business for Savills in 2007. Following the dissolution of Savills’ alliance with the Trammell Crow Company, this return to American soil is in line with the company’s strategy to invest directly in US operations. Among Granite’s high-proile clients are JP Morgan and institutions such as Calpers (the Californian state pension fund). Prominent transactions include the sale of retail and office properties on behalf of private property investor and developer, The Starmount Company, for $540.8 million (£262 million).
Now known as Savills Granite, the company is the ideal platform from which Savills can expand its US business. Simon Hope, Managing Director for Capital Markets, comments: “Granite was the ideal fit for our first US choice because of an outstanding cultural synergy, New York City location, access to capital markets and strong leadership. The atmosphere is bubbling within the company and expansion plans are strong. We aim to recruit 100 people to the New York office within the next five years and there are plans to open on the West Coast, either in San Francisco or Los Angeles.” John Lyons, CEO of Savills Granite, adds: “This is our biggest opportunity in the world’s largest market. We are financially robust and are confident we can expand the US business profitably.” Savills has relocated one of its top European brokers, Borja Sierra, to the business to focus on cross-border transactions.
Contact: Simon Hope
+44 (0)20 7409 8725
shope@savills.com
Contact: John Lyons
+1 212 328 2800
jlyons@savillsgranite.com