Brokers Invest in SiteStuff to Create Buying Alliance
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CB Richard Ellis Services Inc., the largest U.S. commercial property broker, and two of its rivals agreed Wednesday to invest $30 million in SiteStuff.com Inc. to create an Internet-based procurement business for the real estate industry.
Los Angeles-based CB Richard Ellis, Chicago-based Jones Lang LaSalle Inc. and Dallas-based Trammell Crow Co. said they would purchase all property management maintenance, repair, and operations products and services on behalf of their clients through SiteStuff.com.
The group said the potential buying power of the alliance represents about $15 billion over a three-year period. The investment in closely held SiteStuff.com, based in Austin, Texas, is being made through the purchase of preferred stock.
The investment is the first since the group, calling itself Octane, was formed in April. Combined, the three companies manage about 1.2-billion square feet of space in North America on behalf of property owners.
CB Richard Ellis shares rose 38 cents to close at $10.19 on the New York Stock Exchange.
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