FHO Partners Seals Multi-Million Dollar Deal with London-Based DTZ
Premier London Real Estate Advisory Company to Enhance its U.S. Presence with Strategic Investment in Boston Brokerage Firm
BOSTON – August 3, 2007: FHO Partners, a privately owned commercial real estate brokerage firm, announced today that DTZ, a top four global advisor on commercial real estate traded on the London Stock Exchange has made a significant investment in FHO Partners under an agreement that includes an option to purchase the company by spring 2008. In addition to London, DTZ also has strong presence in Europe, Asia Pacific, and other parts of the world.
The multi-million dollar agreement will re-brand FHO as DTZ FHO Partners, enhancing the Boston-based entity’s ability to meet its clients’ global needs in transaction management, capital markets, project management services, and real estate appraisal.
This investment in FHO complements DTZ’s May 2006 transaction with New York-based Rockwood, which provides both transactional and advisory capital markets services throughout North America.
“This is an important step for our company, as this agreement with DTZ provides us and our clients with access to a global services delivery platform to support our landlord, tenant and capital markets work,” said Joe Fallon, managing partner of FHO.
“DTZ is a world-class organization with an excellent reputation for client service, teamwork, and integrity. We are pleased to become part of the DTZ group at this interesting stage of its development.”
Global platforms are increasingly important for real estate advisers, as clients are taking a worldwide perspective on procurement, solutions and service delivery. This investment in FHO will expand and strengthen its real estate advisory services in the United States.
Details of the agreement with DTZ include $2 million for a preferred interest in FHO Partners together with a $2 million option payment giving DTZ the right to acquire the entire outstanding interests in DTZ-FHO between April 1 and May 1, 2008.
On exercise of the option, DTZ will pay an additional $18 million, of which up to $6 million is payable in loan notes convertible to DTZ shares. A further earn-out payment of up to $13 million is payable in 2010 or 2011, of which up to 30 percent, at DTZ’s sole discretion, is payable in loan notes convertible to DTZ shares.
“This agreement further reinforces DTZ’s commitment to the U.S. market and our continuing development of a global, highquality real estate advisory business,” said MDS, group chief executive of DTZ. “We understand the importance of delivering a global platform to our clients to meet their growing business needs. We view our FHO transaction as another important step in our strategy to build breadth and depth of local talent within the world’s key financial centers.”
FHO has gained a strong track record in providing high-quality tenant and landlord advisory services in the Greater Boston area. The team of more than 40 professionals represents a wide range of companies and landlords building upon their experience gained working on some of the most noteworthy deals in this region.
About FHO Partners
FHO Partners, LLP is a commercial real estate firm based in Boston, Mass. offering a full range of brokerage, consulting, strategic planning, research, lease administration, marketing, lease auditing, lease portfolio and transaction management services for corporate and institutional clients alike. The senior partners of the firm have worked together for over 20 years providing customized advisory consulting and brokerage services to an extensive range of corporate and institutional clients, both locally and on a national and international basis. The experienced professionals that make up FHO have addressed the real estate needs of many industries including life sciences, high-tech and financial services as well as law, consulting, accounting and their professional firms, assisting clients to develop and implement customized real estate solutions that enhance their overall business strategies
About DTZ
DTZ is a leading global real estate adviser with over 11,000 staff within its system operating across 140 cities in 45 countries working with clients throughout the world. Its client-focused activities range from high quality capital market solutions, to the more traditional occupier-led property services and advice. The comprehensive service offering across EMEA, Asia Pacific and the Americas is based upon detailed local knowledge backed by first-class research. With its full-service expertise spanning all real estate sectors, DTZ offers a global solution to meet each client’s particular property-related investment and business needs. The parent company, DTZ Holdings plc, has been quoted on the London Stock Exchange since 1987.