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Published on February 6, 2008

The move was made to form a subsidiary called Jones Lang LaSalle Sallmanns, which will complement Jones Lang LaSalle Hong Kong's existing operations.

The new entity will be a specialist provider of initial public offerings (IPO), mergers and acquisitions (M&As) and financial valuations in the Asia-Pacific, with an initial focus on the greater Chinese region. Jones Lang LaSalle will continue its very successful valuation practice in its Asia-Pacific offices, predominantly in the real-estate property domain for lenders, investors and developers.

Sallmanns brings 20 years of experience in the valuation area in Asia and has undertaken most of Hong Kong's IPO valuations in market-capitalisation terms in recent years. Since 2006, the capital value of IPOs they have handled has exceeded US$40 billion (Bt1.32 trillion).

Paul Brown, formerly managing partner of Sallmanns, will be CEO of Jones Lang LaSalle Sallmanns. The senior-management committee will consist of former executive directors of Sallmanns - Sylvia Lau, Sue Chen and Simon Chan - as well as Chun Kong Lau, head of valuations in Asia for Jones Lang LaSalle.

"With this merger, we can leverage this deep expertise in IPO, M&A and financial-valuation services in the greater China region and more broadly across the Asia-Pacific," said Jones Lang LaSalle Asia Pacific CEO Peter Barge.

An extensive and detailed strategic analysis consistently reinforced the need for a specialist valuation business in the areas of IPOs, M&As and financial valuation.

"The two firms share similar values and have deep roots in the real-estate-services industry in the Asia-Pacific," Brown said.

"It is a solid cultural fit, and the merger will significantly strengthen our value to clients in greater China and across the region. We can enhance our value proposition to our clients by providing them with a broader range of real-estate services as they expand their businesses."

This merger allows Jones Lang LaSalle Sallmanns to be ideally positioned to seize the opportunities with fast-expanding corporations in the greater Chinese region and the shifting interest of investors, said Barge.

"We see a growing demand for integrated real-estate services, given the increase in M&A and IPO activity in this region," he said.

"Acquisitions and mergers such as this one will continue to boost our growth strategy."

Last year, Jones Lang LaSalle Asia Pacific increased its revenue 79 per cent to $602 million. Its operating income reached $70.2 million, an increase of 277 per cent.

The firm has orchestrated 15 significant M&As globally since 2006. Prominent among them were Spaulding and Slye in the US, Trammell Crow Meghraj in India and the RSP Group in Dubai.

Sallmanns, formally an equity partnership, was established in Asia in 1988. It has a strong presence in China and Hong Kong.

The Nation

Hong Kong