An affiliate of Canadian private equity firm Peerage Capital Group has agreed to acquire Sotheby’s International Realty Canada (SIRC), a Toronto-based luxury real estate company.
Terms weren’t released for the deal, which is expected to close this month. Peerage Realty Partners Inc, a Toronto-based luxury real estate brokerage organization, is buying SIRC from Dundee Corp.
The acquisition will expand Peerage Realty’s market footprint and add agents and $5 billion in annual sales. Don Kottick will become SIRC’s new president and CEO.
Peerage Capital invests in real estate, asset management, wealth advisory services, land assembly and aviation services.
Peerage Realty Partners Enters into Agreement to Acquire Sotheby’s International Realty Canada from an Affiliate of Dundee Corporation
The completion of the acquisition will solidify Peerage Realty Partners Inc. as one of North America’s leading luxury real estate brokerage organizations
TORONTO, May 9, 2019 /CNW/ – Peerage Realty Partners Inc. (“Peerage”) announced today that through a wholly-owned subsidiary, it has entered into an agreement to acquire the Sotheby’s International Realty Canada franchise rights from a wholly-owned subsidiary of Dundee Corporation (TSX: DC.A), subject to satisfaction of customary closing conditions and execution of a definitive franchise agreement. It is anticipated that the closing of this transaction shall occur on or about May 17, 2019. Built on a tradition of excellence, the Sotheby’s International Realty® brand launched in 1976 to market homes and luxury real estate with exceptional service and professionalism. Sotheby’s International Realty Canada is the iconic national brand for Canada’s luxury residential and recreational properties.
The completion of this acquisition will expand Peerage’s footprint in the Canadian luxury real estate services market. It will add 540 agents and $5 billion in annual sales to Peerage’s total sales. Financial terms were not disclosed.
“With over $112 billion in global sales volume, 22,500 sales associates and 990 offices in 72 countries and territories worldwide, the Sotheby’s International Realty brand is the most talked about, written about, impactful residential real estate brokerage network in the world,” said Miles S. Nadal, Founder and Executive Chairman of the Peerage Capital Group.
Upon completion of the acquisition, long-time Peerage executive, Don Kottick will be named the new President and CEO of Sotheby’s International Realty Canada. In addition to his extensive experience managing and operating Canadian brokerages and technology companies, he is actively involved as a Director at the Canadian Real Estate Association, Past-President of the Real Estate Institute of Canada, and past Director of the Toronto Real Estate Board.
“Upon completion of this acquisition, it will be an honour to serve as President and CEO of Sotheby’s International Realty Canada. Throughout my career, I have long admired this brand and its rich culture of professionalism, strong marketing, and top-tiered client service”, stated Kottick. “The Sotheby’s International Realty brand is the preeminent destination that attracts some of the best talent in the industry. Moving forward, our focus will be on enhancing agent productivity, client experience, operations and continuing to attract the elite of the industry. With Peerage’s support, we will uphold and strengthen our position as the leader in luxury residential real estate in Canada.”
“The addition of an international luxury brand has been a key part of our growth strategy for many years. The addition of Sotheby’s International Realty Canada to the Peerage family will be an important strategic milestone for us. We continue to fulfill our mission to be the preeminent luxury real estate brokerage organization, partnering with the best people in our industry, together with iconic luxury brands, in the resale and pre-construction sales markets,” stated Gavin Swartzman, President and CEO of Peerage Realty Partners.
“Sotheby’s International Realty will be pleased to welcome the Peerage family to our network. We have followed Peerage’s impressive track record of successful partnerships in the luxury real estate brokerage market. We are confident that they will accelerate the growth trajectory of Sotheby’s International Realty Canada,” said Philip White, President and Chief Executive Officer of Sotheby’s International Realty.
About Sotheby’s International Realty Canada
Established in 2004, with over 32 offices nationwide, Sotheby’s International Realty Canada is Canada’s largest luxury brokerage with over 540 Sales Associates and over C$5 billion in annual sales of residential real estate. Sotheby’s International Realty Canada extends top-tier client service and marketing to luxury homes nationwide. The franchise receives support from Sotheby’s International Realty Affiliates LLC with a host of operational, marketing, recruiting, educational and business development resources. Sotheby’s International Realty Canada also benefits from an association with the venerable Sotheby’s auction house, established in 1744.
About Peerage Realty Partners
Founded in 2007, Peerage Realty Partners Inc. (Peerage), a subsidiary of Peerage Capital, offers a unique professional partnership model for entrepreneurial real estate firms. Peerage transacts over C$13 billion in annual sales volume, with over 1,840 sales representatives and 72 offices. Peerage has extensive experience and success in growing luxury brokerage firms across North America. Peerage provides capital for growth and expansion, operational expertise, marketing, PR, and value-added products and services. In addition to Sotheby’s International Realty Canada after completion of the acquisition, our partners include: Madison & Company Properties LLC, a leading luxury brokerage in Denver, Colorado; Chestnut Park Real Estate, one of the top luxury firms in Ontario, Canada; Baker Real Estate, the leader in new development and condominium sales and marketing in Ontario and Montreal, Canada; Fifth Avenue Real Estate Marketing, a leader in new development and condominium sales and marketing in British Columbia, Canada; and StreetCity Realty, a progressive brokerage in Ontario, Canada.
For the latest news from Peerage Realty Partners, visit peeragerealty.com or follow them on LinkedIn.
About Peerage Capital Group
Peerage Capital Group (Peerage Capital) is a leading North American business services and private investment firm. Peerage Capital is focused on partnering with exceptional management teams over successive generations to form long-term investments across several strategic business services platforms including real estate services, real estate development and management, land assembly, asset management and wealth advisory services. Their growing network of partner companies employs over 1,500 people across Canada and the United States with over C$7 billion in total assets under management (AUM) and administration and transacting over C$13 billion in annual sales of residential real estate.
Peerage Capital believes that superior talent is the ultimate driver of long-term growth and success. Accordingly, we operate with a strong culture of partnership, collaboration and alignment of interests, both economically and culturally. Peerage Capital’s unique professional partnership model has been refined over 39 years to accelerate growth through value added services that enhance the sustainable, profitable growth rate of the organization, thereby maximizing value.
For the latest news from Peerage Capital, visit peeragecapital.com or follow them on LinkedIn.
For further information: Peerage Realty Partners: Gavin Swartzman, President & CEO, 647.547.3431, [email protected]; Sotheby’s International Realty Canada: Don Kottick, President & CEO, 647.547.3430, [email protected]