Deloitte Real Estate has begun a formal strategic review of its agency and investment businesses.
A decision on the future of national, West End and City agency and investment teams is expected in four to six weeks. The teams total around 80 staff and include three partners – Stephen Peers, head of transactions and West End; Jamie Olley, head of City investment; and John Rodgers, head of national investments.
The prospective outcomes of the review, prompted by the ongoing conflicts associated with being part of a big-four accountant, include maintaining the status quo, giving up relationships with audit clients that bring about conflicts, retraining and repositioning staff within Deloitte, and the transfer of staff to a different, external business.
The teams subject to the review frequently come up against conflicts and US Securities and Exchange Commission regulations preventing them from taking on mandates owing to business being undertaken by other departments within Deloitte.
If staff move to an external business it is unlikely a formal sale will take place in exchange for a payment and that employees will simply transfer.
The review is part of a Deloitte-wide process, examining areas where it is world class, where it needs to bulk up, where it should be focusing away from and where it is underweight.
Deloitte bought Drivers Jonas in 2010, increasing its staff by 650 to increase its strength in the sector.
Despite the problems faced by the transactional elements of the business, Deloitte’s real estate consultancy business has a number of sizeable mandates, including supporting Transport for London in its search for property partners and advising on the redevelopment of the Palace of Westminster.
Countrywide, the owner of Lambert Smith Hampton, made an approach at the end of last year to buy the whole of the Deloitte Real Estate business but a deal could not be agreed. The wider Deloitte Real Estate business is not for sale.
Deloitte declined to comment.
Four parties have been shortlisted to buy Bilfinger’s property businesses, including Bilfinger GVA. The shortlist does not include CBRE or KKR, which have previously been linked with the firm. The Bilfinger businesses are likely to be sold as a whole package rather than as separate agency and facilities management functions. A decision is due before MIPIM, which begins on 14 March.
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