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Private equity firms TPG, PAG selling shares in Cushman & Wakefield worth US$310.73 mil

TPG and PAG backed Cushman & Wakefield's ascent to the ranks of the biggest players in the commercial services sector back in 2015 (Photo: Albert Chua/EdgeProp Singapore)

Private equity firms TPG and PAG Asia Capital, along with their affiliated funds, are selling all their shares in real estate advisory services firm Cushman & Wakefield (C&W).

Texas-headquartered TPG and Hong Kong-based PAG are selling a total of over 26.5 million ordinary shares of C&W. According to a prospectus to the Securities and Exchange Commission on May 20, based on the closing share price of $11.72 per share, the total value of the shares amounts to US$310.73 million.


The shares will be sold via an underwritten public offering with JP Morgan as the sole underwriter which will resell the shares. C&W will not receive any of the proceeds from the offering, according to the company announcement on May 20.

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As of May 17, 2024, TPG held about 7.5% of C&W’s total outstanding shares, and PAG held about 4.1%.

A decade ago, in June 2014, TPG and PAG, alongside co-investor Ontario Teachers' Pension Plan, acquired the London-based DTZ from UGL Limited for an enterprise value of US$1.215 billion. The following year, DTZ, backed by the consortium of TPG, PAG and the Ontario Teachers' Pension Plan, acquired the Chicago-based C&W for US$2 billion.

The acquisition and subsequent merger of DTZ and C&W in 2015 catapulted the latter to the rank among the largest players in the commercial real estate services sector. The world’s two biggest players in the sector are CBRE and JLL, both of which are listed on the New York Stock Exchange (NYSE).

In its initial public offering on the NYSE on August 1, 2018, C&W offered 45 million ordinary shares at US$17 per share. Its share price closed at US$10.79 on May 24, 2024. The stock market is closed for Memorial Day on May 27.

In 1Q2024, C&W reported nearly US$2.185 billion in revenue, down 3% y-o-y. Net loss in 1Q2024 narrowed to US$28.8 million from a net loss of US$76.4 million the previous year.

In comparison, CBRE recorded revenue of US$7.94 billion in 1Q2024, up 7.1% y-o-y, with a net income of US$126 million, up 8% from the previous year. JLL's revenue in 1Q2024 was US$5.12 billion, up 9% y-o-y, while net income was US$66.1 million, up 818% from a loss of US$9.2 million from a year ago.

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