The strategic acquisition will allow CBRE to diversify its operations and capitalise on growing interest from private investors in the real estate market.
The transaction, initiated in September last year when CBRE approached Burgess Rawson, is expected to be completed within the next 45 to 60 days according to the AFR.
Phil Rowland, CBRE’s chief executive for Australia and New Zealand, said the move had strategic importance for the company’s growth plans.
“We’ve got really high conviction in the growth opportunity in that private and high net worth segment of the investment market,” Mr Rowland said.
“We see it as a rapidly growing segment because of the wealth accumulation there. It also is a segment of the investment market that does tend to be a little less cyclical or a little bit more resilient.”
Rowland said that population growth would continue to expand the investible property market in Australia, creating more opportunities for the combined entity.
Once the acquisition is finalised, CBRE’s metropolitan investments team, which manages investment and development properties under $35 million, will be led by Ingrid Filmer, the current chief executive at Burgess Rawson.
Burgess Rawson has built a strong reputation in the commercial real estate sector since its establishment in 1976 by Christopher Burgess and Gerald Rawson.
The company now employs more than 80 people and brokers deals up to $100 million across various commercial real estate sectors, including early education, fast food, healthcare, large-format retail, and service stations.
The firm is particularly known for its popular commercial property auctions held every six weeks in Brisbane, Sydney, and Melbourne, featuring properties valued between $300,000 and $25 million.
These auctions have helped Burgess Rawson establish a significant market presence, with approximately $1.6 billion in annual sales.
Ms Filmer, who owns just over 20 per cent of Burgess Rawson, said technological advancement and changing client needs were key factors in accepting CBRE’s offer.
“Burgess Rawson is an absolute-proven winner in everything that we’ve touched. But it’s about giving our private clients so much more,” Ms Filmer said.
“It’s about giving them a full-service platform that includes consultancy valuations, depreciations, international debt, international offices.”
The acquisition only involves Burgess Rawson’s eastern seaboard operations, which were consolidated in 2021 when the Melbourne office bought out the Sydney office and took over the Queensland outfit.
The ACT and West Australian Burgess Rawson offices remain independently owned.
Burgess Rawson has established dominant market positions in several commercial property categories, including 68 per cent market share for service station transactions, 43 per cent for healthcare, 64 per cent for fast food drive-through operations, and 53 per cent for large-format retail.
Ms Filmer said he was enthusiastic about the potential for future growth under CBRE’s ownership.
“It’s half-time in our grand final game. We get a whole new game to play with, with CBRE as our brand and as our future. And I just think that they’re the strongest in the big four market,” she said.
