U.S.-based CBRE Group to buy Telford Homes for 267.4 million pounds

U.S.-based CBRE Group to buy Telford Homes for 267.4 million pounds
FILE PHOTO: Construction works by Telford Homes in Stratford, east London, Britain April 18, 2016. REUTERS/Russell Boyce -
Russell Boyce(Reuters)
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(Reuters) – U.S. real estate firm CBRE Group Inc <CBRE.N> said it will acquire British residential property developer Telford Homes Plc <TELF.L> for about 267.4 million pounds as it looks to expand into UK’s multifamily rental market.

The all-cash deal for 350 pence per share represents a premium of about 11.1% to Telford’s closing price on Tuesday.

Telford’s shares were seen rising as much as 10% on the London’s junior market on Wednesday, according to premarket indicators.

The deal comes at a time when UK builders and developers are reeling under a slowdown in European growth and home buyers are holding off for fear of further falls in house prices as the country navigates through its plans to leave the European Union.

Telford in May reported a nearly 13% drop in its annual profit for the last year as it sought to navigate a Brexit-dampened London housing market with an increased focus on low-risk build-to-rent properties.

Los Angeles, California-based CBRE said Telford will become a part of its Trammell Crow Company and its Chief Executive Officer Jon Di-Stefano will continue to lead the business.

CBRE, a Fortune 500 company, said its offer price is final and will not be increased but it has the right to raise it if another offer is made for Telford by a third party.

(Reporting by Shariq Khan in Bengaluru; Editing by Arun Koyyur)

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