C&W Wins Citigroup Assignment
By Gus Delaporte April 14, 2014 2:00 pm
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Citigroup (C) has hired Cushman & Wakefield (CWK) to manage its real estate portfolio in the U.S. and Canada, according to The Wall Street Journal.
The real estate services company will assume responsibility for the investment bank’s 27 million square feet of office, retail and data space from JLL (JLL), which chose not to bid on the contract when it came up for renewal, the Journal reported. The assignment includes Citigroup’s headquarters at 388-390 Greenwich Street in Tribeca, which is triple-net leased to the bank through 2035.
An announcement earlier this month of Cushman & Wakefield’s 2013 financial results made note of the new assignment for the company’s Corporate Occupier and Investor Services unit. The real estate company has been ramping up its facilities management business, according to the Journal. The business made up 23.5 percent of the firm’s revenue in 2013, up from 21.5 percent in 2012.
John Santora, the chief executive of CIS for Cushman & Wakefield, declined to comment on the new business but told the Journal the firm generally makes money on facilities management services. “We’re not going to chase business that is unprofitable for us,” he said.
