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Toronto will be the fourth tightest office market in the world by 2019, according to a new report by real estate company Cushman and Wakefield.Frank Gunn/The Canadian Press

Global real estate giant Cushman & Wakefield Inc. has nearly doubled the size of its Canadian work force with the acquisition of real estate management firm 20 VIC Management Inc.

The deal, which is being announced Tuesday, adds around 700 employees to Cushman & Wakefield's (C&W) Canadian operations, and brings 21.4 million square feet, or $7-billion worth of assets, under the company's management. C&W has not disclosed the value of the acquisition, which closed on Friday.

Toronto-based 20 VIC manages commercial real estate for major investors such as pension funds, offering everything from janitorial services to mall and office renovation. The company operates dozens of commercial properties across the country, including malls Erin Mills Town Centre in Mississauga and The CORE in Calgary, and offices such as One Queen Street East in Toronto and Eighth Avenue Place in Calgary.

The acquisition marks the first time that C&W– a brokerage and real estate services firm – will be in the property-management business in Canada, although it manages properties in other countries.

"It's a significant scale development for us, both of service capability and people," Chuck Scott, chief executive officer for C&W's Canadian operations, told The Globe and Mail. "The industry is evolving, the clients are evolving, the ways that they are making decisions now are changing. … They're looking to service partners like Cushman & Wakefield to have a fully integrated suite of services to help them make those decisions."

The acquisition is the first major deal since Mr. Scott became CEO 18 months ago, although it follows on the heels of a smaller deal – the acquisition of Ashlar Urban, a boutique brokerage specializing in Toronto real estate – and the relocation of C&W's Toronto office.

It's part of a wave of acquisitions worldwide since the company merged with Debenham Thouard Zadelhoff (DTZ), another commercial real estate giant, two years ago. The 2015 deal created one of the largest real estate companies in the world, which operates under the C&W brand.

"Cushman & Wakefield has been active in seeking out and acquiring companies around the world that fit its strategic objectives," said Brad Dugard managing director of corporate communications for the Americas.

Recent acquisitions in the United States include EnSite Solutions, a company focusing on data centres and health-care facilities, and Taylor & Mathis, which provides services for commercial properties in Florida. C&W is also announcing on Tuesday its intention to acquire 10 brokerage and asset management offices in Minnesota, Nevada, Utah and Washington state from Minnesota-based Northmarq Capital.

With the acquisition of 20 VIC, C&W's Canadian head count will increase to 1,539 from 846. There will be no personnel changes at 20 VIC, and the company will maintain its own offices and management team, Mr. Scott said.

As a private company – owned by an investor group led by TPG Capital, PAG Asian Capital, and Ontario Teachers' Pension Plan – C&W does not publish financial reports. However, the company says it oversaw $1.2-billion in capital market sales last year in Canada, and appraises $82.5-billion worth of Canadian assets annually.

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