The Philippine unit of global property consultancy firm CBRE Group, Inc. said it is partnering with a newly-established property consultancy firm that will act as CBRE’s leasing, capital markets and consulting services arm in the Philippines.
In separate statements on Thursday, CBRE and Leechiu Property Consultants (LPC) said they would form a strategic alliance in which LPC will be the “preferred provider” for brokerage and consulting services for CBRE’s clients in the Philippines.
“The alliance between the two firms is envisioned to benefit the Philippine real estate industry, one of the most dynamic in Asia,” LPC said.
LPC is a real estate services firm based in Makati City in Metro Manila. The company began operating in May of this year.
“Leechiu operates in all key Philippine markets and has arranged more than 2 million sqm (21.5 million sq. ft.) of office leasing transactions and more than P100 billion ($2.1 billion) of investment sales transactions,” CBRE said.
Earlier this month, LPC reported that it expects to transact P17.6 billion worth of property deals in the next six to 12 months.
Most of the anticipated transactions are from the Information Technology-Business Process Management (IT-BPM) sector.
LPC said it has 333,000 sqm in the pipeline, “41,000 sqm of which are from the IT-BPM sector and the remaining 292,000 sqm from other industries.”
CBRE also noted that it continues to have strong operations in the Philippines.
“CBRE also continues to operate a strong, wholly-owned business in the Philippines which provides facilities and project management services for its occupier clients in that country,” the company said.
LPC Chief Executive Officer David Leechiu expressed his optimism for the partnership with CBRE.
“This is an exciting time for the real estate industry. The alliance brings us closer to being the number one real estate brokerage business in the country by 2017,” Leechiu said.
He added that the alliance will strengthen both firms’ capabilities, and will pave the way for new possibilities for their clients.
“With our team of professionals, we are fully committed to delivering superior value and providing exceptional real estate solutions to our partners and clients,” Leechiu said.
Similarly, CBRE Asia Pacific Chief Executive Officer Steve Swerdlow echoed Leechiu’s optimism.
“We believe that our new strategic alliance – in combination with our existing facilities and project management capabilities – gives us the strongest offering to meet our clients’ needs in the Philippines as well as across Southeast Asia,” Swerlow said.
The strategic alliance between the two real estate firms will take effect in January 2017.
The two firms emphasized that they will be operating separately and will remain as wholly independent and separate organizations.
“CBRE will continue to independently operate their facilities and property management and project management businesses locally,” Leechiu said.
“The arrangement does not involve financial investment or transfer of ownership or control,” Leechiu concluded.