CBRE EMEA revenue boosted by Norland acquisition

Property services group CBRE has reported a ‘banner year’ in 2014 following double-digit revenue growth in the last quarter.

Revenue increased by 71% to $740.1 mln (€646 mln) in Europe, the Middle East and Africa (EMEA) in the fourth quarter, mainly as a result of CBRE's purchase of Norland Managed Services in 2013.

With the Norland contributions stripped out, CBRE’s organic revenue rose by 16% (23% in local currency) in the EMEA region. The company attributed the increase to higher property sales, leasing and appraisal activities and strong growth in occupier outsourcing.

The company reported significant improvements in several countries, including Germany, Ireland, the Netherlands, Spain and the UK.

The total global revenue for CBRE Group grew by 26% to $9 bn (€7.9 bn) over the year and by 25% in the fourth quarter. Net income rose 18% to €491 mln, while earnings per diluted share improved by 17% to €1.47.

Revenue for the fourth quarter totalled €2.45 bn worldwide, while in the EMEA region the acquisition of Norland boosted EBITDA by 66% to €70.2 mln.

CBRE entered an agreement in November 2013 to acquire Norland, a provider of commercial building technical engineering services in the UK and Ireland, for £250 mln (€335 mln). The bulk of the purchase price was paid in cash.

Global property sales revenue improved by 14% in Q4, with increases of 20% or more in France, Spain and the United States. Global Investment Management revenue declined by 26%, primarily as a result of significantly higher carried-interest revenue in the last quarter of 2013.

Credit rating agency Standard & Poor’s raised CBRE’s corporate rating to investment grade during the fourth quarter.

Bob Sulentic, president and CEO, said: ‘2014 was a banner year for CBRE. We generated strong growth and reached new milestones for total revenue and EBITDA. We achieved these results by investing in our professionals and platform, as our people worked together to create distinct advantages for our clients.’

He added: ‘We believe 2015 will be another year of strong growth. The investments we’ve made in our people and operating platform have materially strengthened our global business lines and positioned them for further market share gains by delivering enhanced value to our clients.’