Savills Regulatory News (SVS)

13 Jun 2006 07:02

Savills PLC13 June 2006 13 June 2006 SAVILLS ACQUIRES HAMILTON OSBORNE KING Savills plc (Savills), the international property services company is pleased toannounce today that it has acquired Hamilton Osborne King (HOK), a leadingproperty advisor in the Irish market. The acquisition is of the HOK Groupoperating within the Republic of Ireland. Savills plc, through its wholly owned subsidiary Savills (Overseas Holdings)Limited will be paying a consideration of €50m for HOK consisting of €26.4m ofcash on completion with the balance of €23.6m, being a combination of loan notesredeemable over a period or 36 months and distributions to senior personnel inHOK. This acquisition is being funded from Savills' cash balances. HOK is the largest firm of commercial property advisors in Ireland and is amarket leader in the Irish retail market where it has a dominant position in theshopping centre sector. It offers a full service property consultancy in allcommercial property sectors with 250 staff based in offices in Dublin, Cork, andan associated office in Limerick. The company is also a leader in the Irish residential market with particularstrengths in the development and new homes sector which has witnessedsubstantial growth in recent years. For the year ended 30 September 2005, HOK reported a turnover of €35.7m andpre-tax profit of €7.8m, before charging non-recurring remuneration in the yearof €4.7m. As at 30 September 2005 the company had gross assets of €22.1m. HOK has been operating in Ireland for over 50 years and has developed into oneof Ireland's most successful property advisors. The company has been at theforefront of sourcing investment product in Europe for Irish investors and wonthe Estates Gazette Irish Property Advisor of the Year in 2005. The acquisitionis in accordance with Savills' Group strategy of expanding its Europeanoperations. Ireland is one of the most dynamic markets in the European Unionand has one of the highest growth rates in Gross Domestic Product. Over thelast five years Irish Investors have invested over £11bn in the UK commercialproperty market. As well as affording our existing clients greater access andexpertise in the region, this acquisition will provide Savills with access to anextensive client base in Ireland. HOK's management and staff are committed to Savills and the firm will continueto trade as HOK for the near future. Paul McNeive and Aidan O'Hogan willcontinue as managing director and chairman respectively. Aubrey Adams, Chief Executive of Savills, comments: "We are delighted to welcome HOK's management and staff into the Savills Group,which will further strengthen our European offering. This is an importantstrategic acquisition for Savills as the HOK business model fits perfectlywithin our Group, and will provide a platform from which we can service thegrowing number of Irish based developers and investors who are looking forfurther opportunities in the European property sector." Paul McNeive (MD) & Aidan O'Hogan (Chairman) of HOK, add: "We are delighted to join forces with Savills, which we see as a tremendousopportunity for the firm, staff and our clients. We have built up ourinternational business significantly in recent years, having acquired over onehundred and fifty properties for Irish investors to a value of over €5 billionin the last five years. This deal sees us becoming part of the Savillsinternational group and is great news for our clients as it gives us directaccess to the Savills Group's 125 offices with over 15,000 propertyprofessionals throughout the world. We are particularly attracted to Savills'global strength. Together we plan to capitalise on the next wave of Irishinvestment and development oversees. " Jeremy Helsby, Chairman and Chief Executive of Savills Commercial, says: "The acquisition of HOK will give us a leading position in Ireland, andpresents exciting opportunities for our teams to work together for the benefitof our mutual clients. I am delighted that HOK's culture is a natural fit withthe Savills entrepreneurial culture. The strength in the Irish economy indicates that the residential and commercialproperty markets, in particular the retail sector, are likely to remain buoyant.The combination of HOK's expertise and client base and Savills extensiveEuropean network including the UK will result in us providing our clients with afirst class pan-European property service." Rupert Sebag-Montefiore, Chairman & Chief Executive Savills L&P, adds: "Residentially Dublin is one of the highest value capitals in Europe, and assuch ties in perfectly with our network. The Irish have become some of thebiggest investors in residential property developments, and in addition toparticipating in a very active domestic market, access to HOK's client base willbe highly relevant to our new development sales across Europe For further information, please contact: Aubrey Adams, Savills Tel: 020 7409 9923 Paul McNeive, HOK Tel: 00 353 87 2577244 Sarah Gestetner, Citigate Dewe Rogerson Tel: 020 7638 9571 Joanne Geary, HOK press office Tel 00353 86 8224381 Editor's Notes: Savills plc is a leading international property services company with a fulllisting on the London Stock Exchange. The company has undergone dynamic growthin recent years establishing itself as a powerful player on the internationalstage with offices and associates throughout the UK, Europe, Asia Pacific andAfrica. In addition, Savills' strategic alliance with top US full service realestate advisory company, Trammell Crow Company, in North America, means thatclients have access to a network of offices in the US and Canada. Savills is the trading name for the property service subsidiaries of Savills plcwhich advise on commercial, rural, residential and leisure properties. Otherservices include corporate finance advice, fund management and a range ofproperty related financial services. Hamilton Osborne King is a leading property advisor in Ireland and has been inoperation for 50 years. It has built up the international aspect to thebusiness significantly in recent years having acquired and disposed of almost €5billion worth of overseas properties for Irish investors. The property management division is responsible for the management of aportfolio worth in excess of • 4 billion with an annual rent roll in excess of •85 million and annual service charge expenditure of • 35 million. HOK also has aUK managed portfolio with an annual rent roll in excess of €14 million. HOK is afull service firm which also offers residential and auction services and hasadvised on a number of key retail lettings. This information is provided by RNS The company news service from the London Stock Exchange