Avison Young announces additional investment by private equity firm Tricor Pacific Capital, Inc.
04 Sep, 2014, 10:00 ET
Funding targeted for commercial real estate services firm's next stage of growth
TORONTO, Sept. 4, 2014 /CNW/ - Mark Rose, Chair and CEO of Avison Young, the world's fastest-growing commercial real estate services firm, announced today that Vancouver, BC-based Tricor Pacific Capital, Inc., a leading North American private equity firm, has made a second growth-capital investment in the common shares of Avison Young.
The investment will strengthen Avison Young's considerable equity base and investment capabilities. The funds are earmarked for continued growth in Avison Young's global footprint and service-line capabilities. Terms of the transaction, which closed on August 19, 2014, were not disclosed.
This investment follows Tricor's $40-million investment in Avison Young's common stock in October 2011, which was used to fund the real estate services firm's aggressive growth and expansion plan.
"We thank Tricor for its continued confidence in our growth strategy, and for partnering with us in the first phase of our global expansion program, which exceeded all expectations," comments Rose. "We are delighted that Tricor has decided to make an additional investment in Avison Young, to assist us in the ongoing execution of our compelling strategy. Our collective vision and goals for the future of Avison Young are completely aligned. Through its support, Tricor will play a vital role in the next stage of Avison Young's growth."
This latest investment will allow Tricor to expand on its meaningful minority stake in Avison Young through the purchase of additional common shares side by side with the current Principals and employee shareholders of the company, thus maintaining Avison Young's unique position as a private, Principal-managed and led company. Tricor will retain two Board positions within Avison Young.
Avison Young used the proceeds from Tricor's initial investment to build out Avison Young's Canadian and U.S. platforms, including the addition of well-respected real estate professionals and the acquisition of high-quality real estate services firms in major U.S. markets, as well as adding infill geographic and service lines. Over the past five years, the company has grown from 11 to 59 offices and from 300 to 1,600 real estate professionals across Canada and the U.S., and in Europe. Since October 2011, the company has added 34 offices and 800 employees, and launched its European presence with the opening of offices in the U.K.
"From the outset, we understood the importance and brand differentiation of a Principal-led company and culture," states Brad Seaman, Managing Director of Tricor. "Furthermore, Avison Young boasts one of the strongest balance sheets in the industry. The company's debt-averse culture and above-market profitability have allowed Avison Young the flexibility to invest and grow faster than any company in the industry. This additional investment, which represents a perfect alignment between Tricor's capital investment objectives and Avison Young's growth objectives, is all about continued growth of a real estate company that is owned and managed by its top talent."
When Avison Young merged its Canadian provincial companies in 2008, the firm stated that it would set a strategic course for high growth and seek investments that were aligned with the firm's mission to be the leading company in its industry while increasing the value of the firm's equity.
Rose adds: "We have no silos, no friction points and no competing internal profit centres. And because we continue to be privately held, we are free to focus on the key to our long-term success: client satisfaction. This contrasts with publicly held competitors, whose focus is, by necessity, on quarterly and year-over-year earnings growth."
About Avison Young
Avison Young is the world's fastest-growing commercial real estate services firm. Headquartered in Toronto, Canada, Avison Young is a collaborative, global firm owned and operated by its principals. Founded in 1978, the company comprises 1,600 real estate professionals in 59 offices, providing value-added, client-centric investment sales, leasing, advisory, management, financing and mortgage placement services to owners and occupiers of office, retail, industrial and multi-family properties.
About Tricor Pacific Capital
With offices in Vancouver, British Columbia and Lake Forest, Illinois, Tricor Pacific Capital is a leading private equity firm that invests in profitable, well-managed, middle-market companies. With expertise across North America, Tricor has been successful in expanding Canadian businesses into the U.S. market and U.S. businesses into the Canadian market.
For further information/comment/photos:
• Sherry Quan, Principal, National Director of Communications & Media Relations,
Avison Young: 604.647.5098; cell: 604.726.0959
• Mark Rose, Chair and CEO, Avison Young: 416.673.4028
Avison Young was a winner of Canada's Best Managed Companies program in 2011 and 2012 and requalified in 2013 to maintain its status as a Best Managed company.
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SOURCE: Avison Young Commercial Real Estate (BC)
For further information: Media Relations: Sherry Quan, (604) 647-5098 or (604) 726-0959 cell, email: [email protected]
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