The Royal Wedding has only recently left the front pages, but another union involving a King has found its way into the commercial property spotlight.
Unusually, the King will take the partner’s name in this lavish £197m liaison, rumours of which surfaced just weeks before completion.
It is the news of the merger between US global commercial property agency Jones Lang LaSalle (JLL) and UK supplier of property, King Sturge.
The new company is rebranding as Jones Lang LaSalle with both parties keen to stress it is a 50-50 merger, with full integration of business lines and teams expected to begin immediately.
JLL specialises in real estate services and investment management, delivering integrated services in 60 countries, including the Netherlands and Germany, where it is the leading consultancy.
King Sturge supplies services including asset management, business recovery, and valuation services, to the UK commercial property market and principal European cities, with partnerships in the US and Asia-Pacific.
The international clout of JLL is expected to dovetail with its new partner’s UK expertise to form a “strategic and cultural fit” aiming to offer service delivery on a global platform. In total, 5,300 employees operating in 70 markets in 30 countries will form the largest consultancy in EMEA (Europe, Middle East, and Africa).
The influx of foreign investment in London’s West End and City commercial property markets is believed to be a factor in the deal, resulting in a combined UK workforce of 2,700, across 34 offices.
£98m of cash is to be paid upfront to King Sturge partners with the balance paid out over the next five years.
Rumours that the global downturn has played a part in the deal have been denied; only a pledge to maximise “utilisation efficiencies of people on both sides” has been forthcoming.
