Situs, the global commercial real estate advisory, asset management and loan servicing firm, has been put up for sale with investment bank Raymond James hired to assemble formal offers for US and European real estate services business.
Situs was acquired in 2011 by Helios AMC, originally a joint venture between Ranieri Partners and Deutsche Bank, which then converted into Situs as it is today.
Situs now has a diversely spread ownership base comprised of: Ranieri Partners of Uniondale, Brookfield Investment Management of New York, South Carolina Retirement and members of its own management team. Deutsche Bank no longer has any direct or indirect holding.
Reports in the US put the possible price tag at between $150m to $200m and even speculated that among an expected diverse range of suitors could be the TPG-led consortium which acquired DTZ and Cassidy & Turley. CBRE is also considered a potential buyer.
Additionally interest could come from firms seeking to bolster their loan servicing, due diligence, real estate advisory or outsourcing services, including private equity firms, broader commercial real estate services companies as well as firms looking to deepen their European footprint.
Such is the diverse range of business lines with Situs, founded in 1988, that a sale is understood to be considered on a partial or whole basis.
In Europe, Situs footprint expanded rapidly following the purchase of Deutsche Bank’s European CMBS loan servicing platform DECO in September 2012, transferring of 83 securitised loans with an outstanding balance of more than €6bn at the time.
Globally, Situs has over €70bn in primary servicing and asset management, and is one of the largest third-party servicers in Europe. Since the beginning of 2012, it has been named the primary and/or special servicer on the majority of the securitizations issued in Europe, including Merry Hill-Deco 2012, Florentia 2012, Taurus 2013 GMFI, Chiswick-Deco 2013, and Debussy DTC PLC transactions.
As special servicer, it is responsible for over €700 million of troubled assets in Europe.
Last December, Situs was appointed to loan service and asset manage the former Eurohypo’s $2bn US property loan book and earlier a portfolio of loans from HSH Nordbank.
This year, Situs beefed up its Spanish offering announcing a joint venture with debt collection group Lindorff to service Spain’s non-performing debt market in order to best meet the underwriting, due diligence and loan advisory needs in all debt classes including CRE, consumer debt, residential mortgages, and small and medium enterprises (SME).
Lewis Ranieri, the securitisation pioneer which founded one of Situs principal shareholders, Ranieri Partners, was interviewed last October by CoStar News in person in this two-part special report which can be viewed here:
Situs declined to comment.