Insignia to acquire Groupe Bourdais

Real Estate Weekly, Sept 5, 2001

Insignia Financial Group, Inc. announced that it has entered into a definitive agreement to acquire Groupe Bourdais, one of France's premier commercial real estate services companies. The acquisition represents a major component of Insignia's corporate strategy to achieve leadership positions in key European business centers and to serve corporate and institutional clients on a global basis.

The transaction is expected to close during the fourth quarter of 2001. The initial purchase price of approximately $30.74 million will be paid mostly in cash. Additional purchase price of up to $18.97 million may become payable over a three-year period, depending on the performance of the acquired business. Insignia expects the transaction to be immediately accretive to annual earnings.

Founded in 1954, Paris-based Bourdais has a total staff of 350 and operates eight offices, including five in the Ile de France region (Greater Paris) as well as wholly owned regional offices in Lyon, Aix and Marseille. In its fiscal year ended March 31, 2001, the firm's revenues totaled $44.6 million, an increase of 17.5 percent from 2000. Bourdais has carved out a 20 percent share of France's office leasing and tenant rep market, making the firm one of the top real estate advisors in that country.

In recent months, Bourdais has been involved in major transactions for leading French companies such as Unibail, Groupe AMA, France Telecom and Renault as well as international clients, including Siemens, AOL Time Warner, Whitehall and GE Capital. Bourdais was also responsible for the largest warehouse investment transaction ever completed in Europe -- a deal between Auchan and Standard Life for a 1.15 million-SF facility in Evry, south of Paris.

"In the past five years, we've grown to achieve primacy in the world's two largest financial centers -- New York and London -- and Paris is next on the list," said Andrew L. Farkas, chairman and chief executive officer of Insignia. "Obtaining a significant position in the French property market has been a key part of Insignia's business goals. Of all the leading French brokers and advisers, Bourdais has the most synergy with Insignia's commercial businesses in the U.S. and the U.K., and, under the leadership of Jean-Claude Bourdais, the firm has an outstanding reputation for integrity, premier service and long-term client relationships."

"We are already number one in several of our markets, and we have been searching for ways to better serve our clients' worldwide requirements and to take advantage of the growing globalization of business that is increasing international investment and occupancy in France," said Jean-Claude Bourdais, chairman of Bourdais. "We are confident that Insignia will help our firm to achieve new heights. The people of Bourdais are energized by the opportunity to be associated with an organization of Insignia's stature and global breadth of services."