Brokerage firm iCore Global plans to build up a significant presence in Continental Europe as it follows its US clients across the globe, CEO Samantha Mueting told PropertyEU in an interview.

Brokerage firm iCore Global plans to build up a significant presence in Continental Europe as it follows its US clients across the globe, CEO Samantha Mueting told PropertyEU in an interview.

The company, which is headquartered in Austin, Texas, recently announced the launch of a strategic partnership with listed Italian property services company Prelios in a first move to expand its business on the Continent. Under the alliance, iCore will provide services to Prelios' corporate clients while offering the Italian firm a global platform to reach clients across the globe.

ICore brokered over $47.5 bn (€38 bn) of global deals in 2013 and currently has offices in 127 locations across 47 countries.

PropertyEU: Can you comment on the rationale for expanding into Europe?
Mueting: Our business was founded with a focus on the international arena and on helping companies to manage and deliver growth through optimisation. We have been focusing on Europe for many years however with the contraction of the world's economy, we were forced to reduce our presence on the ground. Today we would like to reinvigorate our efforts on the continent and as a major difference to other global services providers, we would like to approach growth from a central European standpoint, and not from the UK: that's the genesis of the partnership with Prelios.

PropertyEU: How did you come into contact with Prelios and why did you decide to team up with them?
Mueting: We are very familiar with Prelios as we have had several business relationships in the past. We were looking for a strong partner with a European reach and no conflicts of interest in its business. We are a conflict-free commercial real estate firm. We provide services and have an asset management arm which is separate from all the other business lines in order to avoid any possible conflict. This is one of the main reasons why we thought Prelios was a great partner for us as their asset management business is in a separate regulated environment. In addition, they have a legacy stronghold in a number of European countries and their clients include several global players such as Unicredit or Pirelli.

PropertyEU: What are the benefits of this joint venture for iCore and Prelios?
Mueting: Prelios needs to have a global footprint in order to be able to serve its clients across the globe and this partnership definitely puts them in the right direction. The gain for us with Prelios is that we needed a partner in Europe with a clear leadership and a centrally located business. The partnership allows us to grow on a pan-European basis and particularly in emerging markets in South Eastern Europe where we see tremendous growth opportunities.

PropertyEU: What are you looking to achieve in Europe in the medium term?
Mueting: We are not as strong as we used to be in Europe but our intent is to become a pre-eminent provider within the Continent in the next 18 months. We are very bullish and we believe in the European marketplace. Real estate is the second-largest cost on every company’s balance sheet but if done correctly it can be an asset. We can make this happen by providing better services to our clients.

PropertyEU: What are the strengths of iCore’s business model that will enable it to develop a strong business in Europe?
Mueting: Some of our competitors such as NAI Global, for instance, are generally locally-owned businesses that have become a member of the global network. There is no connection from one business to the other, there is no common platform, and the country units just share a common brand, giving the idea of a global presence but they are not truly global. This doesn’t work very well in the services industry.
Other brokers such as C&W, JLL and CBRE are true global businesses but they still have challenges in their operations because they don’t have the technology or just the standard protocols and practices within themselves to operate as a unit.
Our business model was literally designed to overcome these challenges. Our offices are all partnership offices, we own the majority as iCore global and we have local people in each country owning a minority interest. We provide a partnership track to our new associates which allows our sales force to be united. And this cooperation is what makes our business so successful.