This one really sneaked up on us – Drivers Jonas, the oldest firm of real estate advisors in the world, is to merge with Deloitte, the business advisory firm.
It will create a new business in the real estate advisory market – a £110 million real estate group which will trade as Drivers Jonas Deloitte.
The merger will lead to one of the largest real estate businesses in Europe, with around 700 partners and staff. In what will be a new model in the real estate advisory market, both sides say the merger will revolutionise how property services are provided.
Drivers Jonas has a strong presence in Scotland and there is no indication yet as to the effect of the merger up in Scotland although I understand that a statement is being prepared on this.
The talk is of expansion, acquisition and hiring but in mergers like this there is always concern about jobs.
The combined real estate group, with annual revenues in excess of £110m, will deliver real estate advisory and transaction expertise to the firm’s clients in all markets and industries. It will also form a critical part of Deloitte’s wider £200m real estate industry team, which specialises in providing professional services to real estate clients.
The deal will see over 650 DJ partners and employees join Deloitte in an innovative move for an accountancy firm. Nick Shepherd, managing partner of Drivers Jonas, will become managing partner of the real estate group will join the Deloitte Executive.
He said: “This is a merger of two premium brands and two top performing teams, each already delivering huge market impact. The merger of our partnership with Deloitte provides a fantastic platform from which to build our advisory and transactions business and further develop our service offering in the capital markets through greater leverage and a more substantial capital base.
“The wider Deloitte business gives unparalleled access to international investors, property companies, sovereign wealth funds and high net worth individuals, who play such a key role in the operation of the capital markets.
“We see huge opportunity in combining Deloitte’s real estate skills and wider business expertise with our full range of property and construction services. No competitor will be able to provide an integrated offer combining real estate knowledge, tax, finance and structuring advice in this way to UK and international investors and occupiers.
“With a real estate offer as comprehensive as any in the market place, and fully integrated to meet the wider business needs of clients, Drivers Jonas Deloitte will be fundamentally different from any other property business. I’m excited to be leading such a talented team in creating a new approach to the real estate market, with the immediate goal to double the size of our business in three years.”
He added: “Now is the perfect time in the cycle to make this change, and we expect to be very busy hiring and acquiring in the short term. We see this as an excellent opportunity for our staff to flourish in the wider dynamic, progressive and forward thinking Deloitte environment. Both practices are committed to their people.
“We are certain that our clients will benefit from the wider palette of professional services and business insight this combination will offer, building on the exceptional quality of service they experience from both DJ and Deloitte. This merger keeps DJ’s name in the market, something both parties wanted to maintain.”
