Colliers International Group $450 Million Investment in Harrison Street Real Estate Capital

Berkshire Capital acted as financial advisor and DLA Piper acted as legal advisor to Harrison Street and the management team, while Three Ocean Partners acted as financial advisor and Winston & Strawn acted as legal advisor to certain of Harrison Street’s shareholders. Sidley Austin acted as legal advisor to Colliers.

Leading global commercial real estate services firm Colliers International Group Inc. (NASDAQ and TSX: CIGI) today announced it has agreed to make a transformational, strategic investment in Harrison Street Real Estate Capital LLC (“Harrison Street”), one of the largest real estate investment firms dedicated to the education, healthcare and storage sectors with approximately $14.6 billion in assets under management. The transaction, which is fully financed and subject to customary closing conditions, is expected to close by the third quarter of 2018. Headquartered in Chicago, with an office in London, Harrison Street is a pioneer in demographic-based real estate investing. Since inception in 2005, the firm has established a series of disciplined and highly differentiated investment products across multiple risk/return strategies, originating and managing a series of open and closed-end real estate investment funds and liquid securities. Harrison Street investors include many of the world’s most respected sovereign wealth funds, public & corporate pension funds, endowments, insurance companies, foundations and family offices.

Under the terms of the transaction, Colliers will acquire 75% of Harrison Street from its founders for $450 million, with an additional $100 million payable in 2022, based on the company achieving certain accelerated performance targets. The senior management team of Harrison Street will hold the balance of the equity. Colliers expects the annual run rate of management fee revenue to be between $100-115 million. Harrison Street’s Co-Founder and Chief Executive Officer, Christopher Merrill, will serve as CEO, lead the operations and remains the largest individual shareholder. Harrison Street’s senior management team will continue to operate the firm’s day-to-day business as it always has, providing long-term stability for all the firms’ stakeholders.

Colliers International Group Inc. operates globally in the real estate services sector. The Firm, led by Jay Hennick, Dylan E Taylor and John B Friedrichsen, in 2017 recorded $1.959 Billion Revenues.

The Sidley deal team is led by partner Michael A. Gordon (Picture) (M&A) with support from partners Asi Kirmayer (M&A), Ben Rosemergy (Employee Benefits and Executive Compensation), Laurin Blumenthal Kleiman (Investment Funds), Jock MacKinnon (Investment Funds), Dominique Gallego (Tax), counsel Kara Brown (Investment Funds) and associates Robert Auray (M&A), Ayo Badejo (M&A), Sean Kim (M&A), Christopher Kendig (Employee Benefits and Executive Compensation) and Lena Qiu (Tax).

Involved fees earner: Michael Gordon – Sidley Austin LLP; Asi Kirmayer – Sidley Austin LLP; Robert Auray – Sidley Austin LLP; Ayo Badejo – Sidley Austin LLP; Sean Kim – Sidley Austin LLP; Benjamin Rosemergy – Sidley Austin LLP; Christopher Kendig – Sidley Austin LLP; Laurin Blumenthal Kleiman – Sidley Austin LLP; Jock MacKinnon – Sidley Austin LLP; Kara Brown – Sidley Austin LLP; Dominique Gallego – Sidley Austin LLP; Lena Qiu – Sidley Austin LLP;

Law Firms: Sidley Austin LLP;

Clients: Colliers International;


Author: Ambrogio Visconti