Friday, August 24, 2023
Savills buys US firm Granite Partners
Savills PLC has acquired Granite Partners LLC, a US real estate investment banking firm. Savills is paying an initial consideration of $54m, of which 75% is payable on completion. The remainder is subject to a five year earn-out, such that the total consideration payable for Granite is capped at $84.6m, dependent on the achievement of EBITDA over a two year future period. In addition to the earn-out, long-term incentive arrangements have been put in place to help with employee retention. This is being funded from Savills' cash balances.
Granite is a New York-based real estate investment banking firm owned primarily by its partners. Founded in 1996 by John D. Lyons and Gerard V. Mason, the company offers investment sales, debt and equity placement and advisory services focusing on commercial property throughout the US. Granite undertakes transactions in the United States, Canada and the Caribbean basin and has worked for a number of high-profile clients including Babcock & Brown, Blackstone Group, General Electric Capital Corp., Goldman Sachs Archon/Whitehall, Health Care Property Investors, Inc., ING/Clarion, JPMorgan and Morgan Stanley.
Prominent transactions undertaken by Granite include the sale of the leasehold interest in the office and retail premises located within Washington D.C.'s Union Station for $160m; representation of the Lightstone Group in its $889m acquisition of Prime Group Realty Trust, a NYSE-listed REIT; and the sale of the Enron World Headquarters building in Houston, Texas on behalf of Enron Creditors for $50m.
Granite currently employs a team of 18 professionals. They have a range of diverse real estate backgrounds and have executed over $21bn of real estate transactions spanning the full range of property types, including office, medical office, retail, multifamily, industrial and hotels. Following the completion of this deal Granite will be re-branded Savills Granite with immediate effect.
Granite is a New York-based real estate investment banking firm owned primarily by its partners. Founded in 1996 by John D. Lyons and Gerard V. Mason, the company offers investment sales, debt and equity placement and advisory services focusing on commercial property throughout the US. Granite undertakes transactions in the United States, Canada and the Caribbean basin and has worked for a number of high-profile clients including Babcock & Brown, Blackstone Group, General Electric Capital Corp., Goldman Sachs Archon/Whitehall, Health Care Property Investors, Inc., ING/Clarion, JPMorgan and Morgan Stanley.
Prominent transactions undertaken by Granite include the sale of the leasehold interest in the office and retail premises located within Washington D.C.'s Union Station for $160m; representation of the Lightstone Group in its $889m acquisition of Prime Group Realty Trust, a NYSE-listed REIT; and the sale of the Enron World Headquarters building in Houston, Texas on behalf of Enron Creditors for $50m.
Granite currently employs a team of 18 professionals. They have a range of diverse real estate backgrounds and have executed over $21bn of real estate transactions spanning the full range of property types, including office, medical office, retail, multifamily, industrial and hotels. Following the completion of this deal Granite will be re-branded Savills Granite with immediate effect.
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