Commercial real estate company Colliers International Group Inc. has agreed to acquire a 75 percent stake in Harrison Street Real Estate Capital LLC (HSRE), an investment-management firm that has extensive interests in “needs-based” real estate, including self-storage. The $450 million deal is expected to close during the third quarter, according to a press release.

Under the agreement, HSRE senior management will retain 25 percent equity and continue to oversee day-to-day operation. Christopher Merrill, co-founder and CEO of HSRE, will serve as CEO and remain the firm’s largest individual shareholder. No changes to the company name were announced.

HSRE’s interests are primarily in the education, healthcare and self-storage sectors, with approximately $14.6 billion in assets under management. Colliers officials expect HSRE management-fee revenue to contribute up to $115 million annually, the release stated.

“The investment in Harrison Street is transformational and the most significant in our history,” said Jay Hennick, chairman and CEO of Colliers. “The transaction establishes us as one of the major players in global real estate investment management, providing an important new growth platform that also facilitates the integration of our existing operations in Europe.”

HSRE was actively seeking an outside investment partner to assist in its global strategy. “Colliers provides long-term stability and increased alignment among our team and limited partners. The relationship strengthens our global capability and offers unique market knowledge and deep relationships with owners and occupiers of real estate around the world,” Merrill said. “Colliers’ entrepreneurial culture, decentralized management style, significant insider ownership and proven investment record was another significant difference. On behalf of our entire team, we look forward to leveraging these advantages for the benefit of our partners, employees and investors, while further differentiating Harrison Street in the future.”

Headquartered in Chicago with an office in London, HSRE manages assets through commingled funds and public securities products. The funds focus exclusively on the education, healthcare and self-storage segmentsAffiliate Harrison Street Securities LLC manages publicly traded real estate securities on behalf of institutional clients and high-net-worth individuals.

Colliers is a global commercial real estate services firm employing more than 12,000 professionals in 69 countries. The company offers a variety of services for investors, business owners and developers. These include consulting, market research, real estate intermediation for sale and rent, project management, property management, and valuation.

Colliers International Valuation and Advisory Services LLC is a partner with Inside Self-Storage (ISS), offering custom data reports based on expenses and cap-rate analysis. The reports are created on demand using comparable data to a specific U.S. address supplied by the customer. They are available for purchase through the ISS Store, an e-commerce website providing research and education products for industry professionals.

Sources:

Colliers International, Colliers International to Make Transformational Strategic Investment in Harrison Street Real Estate

REBusiness Online, Colliers to Acquire 75 Percent Stake in Harrison Street for $450M