Tuesday June 13 2006

HAMILTON OSBORNE KING IS ACQUIRED BY SAVILLS

Hamilton Osborne King, the leading property advisor in Ireland, is pleased to announce today that it has been acquired by Savills plc (Savills), the International property consultancy. The acquisition is of the Hamilton Osborne King group operating within the Republic of Ireland. Savills plc will be paying a net cash consideration of €50m for Hamilton Osborne King. This acquisition is being funded from cash currently on Savills’ balance sheet.

Hamilton Osborne King took the decision to sell to Savills to bring its international investment and development business to a new level and to take advantage of a global network of property, contacts, expert staff and resources that an international Plc has to offer.

For the year ended 30 September 2005, Hamilton Osborne King reported a turnover of €35.7m and pre-tax profit of €7.8m, before charging non-recurring remuneration in the year of €4.7m. As at 30 September 2005 the company had gross assets of €22.1m.

 

Pictured at the signing of the acquisition contract between Savills Plc and Hamilton Osborne King are: (l-r) Jeremy Helsby, Chairman & Chief Executive, Savills Commercial Ltd., Juliette Stacey, Financial Director, Savills Commercial Ltd., Paul McNeive, Managing Director, Hamilton Osborne King and Aidan O'Hogan, Chairman, Hamilton Osborne King.

 

Paul McNeive, Managing Director, Hamilton Osborne King states, "We are delighted to join forces with Savills and together we now are the leading firm of property advisors in the UK and Ireland. Hamilton Osborne King has been trading extremely successfully and we will have more than doubled our fee income in the three years to the end of September 2006. Central to this growth has been the continued expansion of our overseas business and we see this deal as the next logical step for the firm in continuing our international expansion. This deal gives us direct access to the group’s 125 offices with over 15,000 property professionals throughout the world. We are particularly attracted to Savills’ global strength and together we plan to capitalise on the growing wave of Irish investment and development overseas. Our strategic goals and organisation values very much mirror each other - we are both committed to growth, integrity, customer service, fostering an entrepreneurial spirit and performance – and we enthusiastically look forward to working with all our Savills colleagues in the future."

Aidan O’Hogan, Chairman, Hamilton Osborne King adds, "Although 100% of the share capital is being acquired by Savills, we will continue to operate a generous bonus scheme which will provide a pool for all of Hamilton Osborne King’s staff in order to incentivise and reward personnel as well as ensuring that the company continues to attract and retain the best performers in the Irish property advice sector. We are leading the market with our progressive graduate recruitment programme and look forward to attracting the very best people to help grow the business in the years ahead. We were particularly attracted to Savills as they have the highest fee income in the sector in the UK and are consistently voted as the employer of choice in an annual survey by Reading University featured in the Estates Gazette."

Hamilton Osborne King is the largest firm of commercial property advisors in Ireland with 250 staff based in offices in Dublin, Cork, and an associated office in Limerick. Hamilton Osborne King has been operating in Ireland for over 50 years and trading as Hamilton Osborne King since 1987 and has developed into one of Ireland’s most successful estate agencies. The company has been at the forefront of sourcing investment product in Europe for Irish investors and won the Estates Gazette Irish Property Advisor of the Year in 2005. Hamilton Osborne King’s management and staff are committed to Savills, with the management team remaining unchanged and the firm will continue to trade as Hamilton Osborne King for the near future. Paul McNeive and Aidan O’Hogan will remain as Managing Director and Chairman respectively.

Savills is a leading international property services group with an extensive network of offices and associates throughout the UK, mainland Europe, the Americas, Asia Pacific and Africa. It employs over 15,000 staff based across 125 offices in 22 countries. Through its partnership with TrammellCrow Company, North America’s leading property services provider, Savills has access to offices in the Americas.

 
In the last 5 years, group turnover has increased from £235.4m to £373.9m and reported profit before tax has increased from £21.6m to £58.6m. This extraordinary growth has recently seen the company enter the FTSE 250 on the London Stock Exchange.

Aubrey Adams, Chief Executive of Savills, comments:

"We are delighted to welcome Hamilton Osborne King’s management and staff into the Savills Group, which will further strengthen our European offering. This is an important strategic acquisition for Savills as the Hamilton Osborne King business model fits perfectly within our group, and will provide a platform from which we can service the growing number of Irish based developers and investors who are looking for further opportunities in the European property sector."

Jeremy Helsby, Chairman and Chief Executive of Savills Commercial, says:

"The acquisition of Hamilton Osborne King will give us a leading position in Ireland, and presents exciting opportunities for our teams to work together for the benefit of our mutual clients. I am delighted that Hamilton Osborne King’s culture is a natural fit with the Savills entrepreneurial culture. The strength in the Irish economy indicates that the residential and commercial property markets, in particular the retail sector, are likely to remain buoyant. The combination of Hamilton Osborne King’s expertise and client base and Savills extensive European network including the UK will result in us providing our clients with a first class pan-european property service."

Rupert Sebag-Montefiore, Chairman & Chief Executive Savills L&P, adds:

"Residentially Dublin is one of the highest value capitals in Europe, and as such ties in perfectly with our network. The Irish have become some of the biggest investors in residential property developments, and in addition to participating in a very active domestic market, access to Hamilton Osborne King’s client base will be highly relevant to our new development sales across Europe."

For further information, please contact:

Paul McNeive, Hamilton Osborne King Tel: 00 353 87 2577244

Joanne Geary, Hamilton Osborne King press office Tel 00 353 86 8224381

Ray Gordon, MRPA Kinman Tel 00 353 87 2417373

Jeremy Helsby, Savills Tel: 0044 20 7409 8947

Victoria Cambridge Savills press office Tel: 0044 20 7409 8940

Sarah Gestetner, Citigate Dewe Rogerson Tel: 0044 20 7638 9571

 

Editor’s Notes:

Hamilton Osborne King are a company within the Savills Plc Group which gives us direct access to 15,000 professionals in 133 offices across 23 countries. Savills plc is a leading international property services company with a full listing on the London Stock Exchange. The company has undergone dynamic growth in recent years establishing itself as a powerful player on the international stage with offices and associates throughout the UK, Europe, Asia Pacific and Africa.

With over 140 offices and associates world-wide, Savills is one of the leading international property advisors. A unique combination of sector knowledge and entrepreneurial flair give clients access to real estate expertise of the highest calibre, across the UK, Continental Europe, Asia Pacific and Africa.

Our distinctive collegiate culture and highly motivated staff ensure that we are committed to getting the very best results for our clients - every time.

The figures speak for themselves. In the last five years, Savills turnover has increased from £235.4m to £373.9 and reported profit before tax has risen from £21.6m to £58.6m; the company is now listed amongst the FTSE 250 on the London Stock Exchange.

Founded in 1987, Hamilton Osborne King was acquired by Savills in June 2006. We have gone from strength to strength to become Ireland's most successful property advisors. With over 250 staff, offices in Dublin, Cork, and an associated office in Limerick and a turnover of over €35 million in 2005. We were voted Irish Property Advisor of the Year in 2005 by Estates Gazette. We are constantly developing new ways to improve our service and build on our reputation as the most enthusiastic and innovative property advisors in the country. We believe that our success is built on fielding the best professional talent in the market, steeped in a culture of customer service to provide a top class professional advisory service for our clients.

Hamilton Osborne King is a leading property advisor in Ireland and has been in operation for 50 years. It has built up the international aspect to the business significantly in recent years having acquired and disposed of almost €5 billion worth of overseas properties for Irish investors.

The property management division is responsible for the management of a portfolio worth in excess of € 4 billion with an annual rent roll in excess of € 85 million and annual service charge expenditure of € 35 million. Hamilton Osborne King also has a UK managed portfolio with an annual rent roll in excess of €14 million. Hamilton Osborne King is a full service firm which also offers residential and auction services and has advised on a number of key retail lettings.