June 11, 2019
Eastdil Secured will become independent of Wells Fargo, its majority owner since 1999, in a management-led recapitalization. The real estate investment banking firm is partnering with Guggenheim Investments and Singapore-based Temasek.
Terms of the transaction were not disclosed. Citing anonymous sources, the Wall Street Journal reported that the deal was valued at about $400 million. Wells had acquired Eastdil for approximately $150 million.
“Ultimately, our new ownership structure will allow us to continue providing truly independent, global advice and ensure our clients receive differentiated guidance in an increasingly competitive market,” said Eastdil CEO Roy March.
He’ll continue leading the firm after Wells Fargo exits its ownership stake, along with chairman Benjamin Lambert and president D. Michael Van Konyenburg. The firm will maintain the Eastdil Secured name, and be headquartered in New York and Los Angeles.
For its part, Wells will retain Eastdil’s public market real estate investment bankers, who will form the Real Estate, Gaming, Lodging, and Leisure (REGAL) industry coverage group within Wells’ Corporate & Investment Banking platform. Additionally, Wells will retain a minority ownership interest in Eastdil.
Eastdil is regarded as the market leader in commercial property transactions of $100 million or more. In 2018, its global deal volume was 827 transactions totaling $243.5 billion.
Pictured: Roy March
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