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UK-based real estate advisory Savills has agreed to a €67 million price tag to move forward with the acquisition of Aguirre Newman. The prominent independent Spanish advisory also operates in the real estate sector, and the deal not only absorbs a key competitor, but enables Savills to move forward with expansion into the EU market.
Founded in 1988 in Madrid by Santiago Aguirre and Stephen Newman, Aguirre Newman is one of Spain’s largest local players in the real estate sector, with 400 staff and offices in Madrid, Barcelona, Málaga, and two office in Portugal. The growing independent offer a full range of real estate consultancy services, as well as brokerage, amid a Spanish property market and broader Spanish economy which are rapidly on the rise in mainland Europe. The acquisition by Savills will subsequently give the firm a foothold in what is proving to be a bullish market, while the professional services group also hope their clients will benefit from their expanded pool of talent.
Real estate consultancy Savills already has a presence in Spain, with offices in Barcelona and Madrid, and 70 members of staff at the firm’s command. The deal suggests Savills is optimistic about the Spanish real estate market, while and keen to strengthen its ties with the EU member state post-Brexit.
With negotiations between Britain’s government and the EU taking an increasingly hostile tone meanwhile, the purchase also aids plans to strengthen cross border opportunities for UK-based Savills, who have collaborated extensively with Aguirre Newman in the past. The two had worked on different projects since almost Aguirre Newman were founded, so with already strong synergies reportedly in place between the two companies, the acquisition means Savills arguably had a ready-made surrogate to navigate the EU market beyond 2019.
The €67 million acquisition fee will be made payable in instalments over five years from completion. The deal is scheduled to completion by 30th November 2017 following satisfaction of customary regulatory and closing conditions, at which point the new company will begin operating under the name of Savills Aguirre Newman.
Santiago Aguirre, President and co-founder of Aguirre Newman, commented, “This is a great opportunity for us to build on our strong position in the market and benefit from being part of one of the leading global brands in the industry. The collaborative skills and capabilities of both firms will allow us to better service our current and future clients. Savills existing team are well known to us and there are firm synergies and a similar work philosophy between our teams that will create a very strong new organisation and a leading force in the industry.”
Rafael Merry del Val, head of Savills Spain, reinforced why this was the right move for Savills meanwhile, stating, “Now is absolutely the right time to take our business forward in a stronger market and more stable economy. Our experience and high specialisation in this market under a successful boutique model based on entrepreneurship, will perfectly combine with Aguirre Newman’s leading position and strength, creating an incredibly powerful brand that merges the best of both models.”
