Mike Strong, president of CB Richard Ellis Europe, Middle East and Africa operations, tells GlobeSt.com that the acquisition is a natural progression in the relationship between CBRE and Noble Gibbons. "We've partnered with them for most of their growth, so they are very well known to us, which makes it a natural move for us to take a major shareholding position in the business," Strong says.

Strong tells GlobeSt.com that the acquisition comes at a time when Russia represents "a massive emerging market." He adds, "There has been a growing level of interest during the past 12 to 24 months from capital wanting to invest within Russia, and within Moscow particularly" among investors from around the world.

Although the transaction side of the commercial real estate business in Russia to date has been primarily focused on leasing, "With the emergence of the investment market and the strong demand from investors, we see the investment side growing quite quickly," Strong observes. Moscow, with its population of 15 million, has become a strong class A office market where "we're seeing the development of grade A office stock, but there is still an undersupply of it, so there is very strong demand," according to Strong. Retail centers are springing up too, Strong adds.

Terms of CBRE's deal with Alfa Capital Partners were not disclosed. Alfa, a private equity and real estate investment firm, acquired its stake in Noble Gibbons on behalf of its investors in 2004.

The the existing service lines that Noble Gibbons offers include property management; leasing of office, retail and industrial properties; consulting and valuation; corporate real estate services; project management and investment brokerage. The business is split approximately 50-50 between transaction services and professional services.

Noble Gibbons, which was founded in 1994, completed sales and leasing transactions valued at approximately $233 million in 2005, and manages more than 2.6 million sf. Noble Gibbons will now operate as CB Richard Ellis Noble Gibbons, with Darrell Stanaford, a veteran of six years with Noble Gibbons and more than 10 years in the Russian real estate market, continuing as managing director of CB Richard Ellis Noble Gibbons.

Instant Insights /

CBRE Acquires Russian Firm with Strong Moscow Presence

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