AGENCIES UK Total Turnover: £4.28Bn Percentage Change: 16.2% Number of Top 40 UK Firms That Saw Revenues Decrease: 15 Top 10 Global Turnover: £20.33Bn

Source: Property Week {Main} Edition: Country: UK Date: Friday 30, June 2017 Page: 33,34,35,3 Area: 3760 sq. cm Circulation: ABC 12704 Weekly Ad data: page rate £2,185.00, scc rate £48.00 Phone: 020 7921 5000 Keyword: Beauchamp Estates

INSIGHT

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1 L 1 ft AGENCIES UK total turnover: £4.28bn Percentage change: 16.2% Number of top 40 UK firms that saw revenues decrease: 15 Top 10 global turnover: £20.33bn

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Stellar CBRE and JLL results distort 6 £4.3bn overall picture year on year

The figures may paint a rosy Total revenue of picture, but 15 of the top 40 top 40 UK firms firms have recorded negative growth this year. Emanuela Barbiroglio Richard Hook Average revenue and Adam Branson report per fee-earner of top 40 On the face of it, the agency world has had another robust year. Total revenue among the UK firms 40 biggest agents has risen by 16.2% since 2016, from £3.68bn to £4.28bn, compared year on year with 13% between 2015 and 2016, according to Property Week!s Agency 2017 survey. By that measure it would appear the uncertainty created by the EU referendum last June had, if anything, a positive impact. However, while last year only three of the 40 agents recorded negative growth, this year 15 saw £20.3brf^W revenues fall - among them half the firms in the Total global revenue top 10. What's more, for many companies that have year seen revenues grow in the last year, that growth of top 10 firms on year has been pretty anaemic. The average percentage uplift across the top 40 was just 5.0% and yet the +21% sector as a whole recorded that seemingly very healthy 16%. So what's going on? The vast majority of the uptick in income is explained by quite staggering increases in the UK's - and the world's - two biggest real estate advisory £6.4bn businesses: CBRE and JLL, which saw revenue growth of 41.1% and 28.1% respectively. By comparison, Savills, which takes the bronze medal, +50% JU /U year on year saw growth of just 3.2%. Where Cushman & Wakefield would figure at Total European the top of the list is unknown - for the third time since the merger with DTZ the company declined revenue of to supply figures - but what is abundantly clear is that both CBRE, which has taken the top spot once top 10 firms again, and JLL have had stellar years in terms of revenue growth in their respective UK businesses. Proportion of firms European success that expect staff CBRE's growth of more than 41% saw its UK revenue increase from £992m to a whopping £1.4bn numbers to increase in a single year. But it wasn't just in the UK that the 29% in next 12 months business recorded impressive results. The figures for its Europe-wide operations are particularly Proportion of firms eye watering, with revenues up from £1.25bn open to M&A in to £2.89bn - a rise of 130%. Globally, revenues increased by 20%, from £8.55bn to £10.27bn. next 12 months "As these results show, over the past few years we have focused our efforts on truly understanding 63% our clients and their needs and have grown and »

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Top 40 firms ranked by UK revenue

Ranking Ranking Company Latest annual UK revenue Previous year's UK Change (%) Year end 2017 2016 (total £m) revenue (£m)

1 1 CBRE 1,400.0 992.0 41.1% 31/12/2016

2 2 JLL 765.0 597.0 28.1% 31/12/2016

3 3 Savills 578.3 560.1 3.2% 31/12/2016

4 4 Knight Frank 299.8 303.6 -1.3% 31/03/2017

5 6 CVA 186.0 190.0 -2.1% 31/12/2016

6 5 Capita Property and Infrastructure 163.4 176.0 -7.2% 31/12/2016

7 7 Deloitte Real Estate 145.9 144.0 1.3% 31/05/2016

8 8 Colliers International 108.0 110.0 -1.8% 31/12/2016

9 9 Strutt & Parker 105.7 107.7 -1.9% 30/04/2017

10 10 Lambert Smith Hampton 99.4 99.2 0.2% 31/12/2016

11 12 Gerald Eve 61.9 54.3 14.0% 05/04/2017

12 13 Carter Jonas 55.2 51.6 7.0% 30/04/2017

13 14 Allsop 46.0 49.0 -6.1% 31/03/2017

14 15 Bidwells 43.8 41.6 5.2% 31/12/2016

15 17 CVS (Commercial Valuers & Surveyors) 30.0 33.4 -10.0% 31/12/2016

16 19 Malcolm Hollis 29.1 25.0 16.6% 30/04/2017

17 23 MJ Mapp 16.1 13.1 22.9% 30/04/2017

18 20 Sanderson Weatherall 14.5 15.6 -7.1% 31/03/2017

19 22 Alder King 13.8 13.1 5.2% 31/08/2016

20 25 Goadsby Group 12.9 12.7 1.6% 30/06/2016

21 26 Rapleys 11.9 12.3 -2.9% 30/04/2017

22 27 Ryden 11.6 12.0 -3.3% 30/04/2017

23 30 Matthews Si Goodman 9.8 7.6 29.5% 31/03/2017

24 29 Strettons 9.0 8.8 2.4% 05/01/2017

25 31 Dacre Son & Hartley 6.9 6.8 1.5% 31/10/2016

£6 - Davis Coffer Lyons 6.6 - - 31/03/2017

zb 34 Hartnell Taylor Cook 6.3 6.3 -0.3% 30/04/2016

2)8 32 Mason Owen 6.0 6.0 -0.4% 30/04/2017

29 35 Fleurets 5.1 5.4 -5.3% 30/09/2016

30 36 Mason Partners 4.9 4.6 6.2% 30/06/2016

31 37 Caxtons 4.6 4.5 2.1% 30/06/2016

32 38 Barker Storey Matthews 3.2 3.1 4.9% 31/03/2017

33 40 Roger Hannah & Co 3.1 2.4 30.9% 31/03/2017

34 39 Lamberts Chartered Surveyors 3.0 3.1 -2.7% 29/02/2016

35 - Legat Owen 3.0 3.0 0.0% 05/01/2017

36 - Johnson Fellows 2.5 2.2 13.6% 30/04/2017

37 - Brown Sj Lee Chartered Surveyors 2.1 - - 31/03/2017

38 - The Lorenz Consultancy 1.7 2.0 -15.9% 31/07/2016

39 - Graves Son Sj Pilcher 1.7 1.6 3.1% 31/03/2017

40 - Robert PlnkusSiCo 1.7 1.4 17.9% 30/04/2017 TOTAL £4,279m £3,682m 16.2%

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« diversified our business accordingly," says Ciaran Is it likely your firm will seek to Bird, UK managing director at CBRE. Hk til ti1 Brexit "Last year saw the successful integration of JCI's merge with or acquire another Global Workplace Solutions acquisition - a critical firm in the next 12 months? uncertainty piece of our end-to-end occupier services offer, has not had which, under the stewardship of Ian Entwisle, has in no small part contributed to the significant ^ a long-term growth of our business as a whole." Bird acknowledges that the growth is surprising jifl impact on the given the strong headwinds caused by the Brexit EH UK economy vote, but insists that the growth was spread across the business. turnover in Q1 this year and this momentum has "Despite the challenges of the EU referendum been sustained in Q2," he says. "Cross-border Don't know last year, we delivered market share gains and investors are clearly still attracted to the higher revenue growth across virtually all service lines and yields on offer in London compared to many other regional offices," he says. "Critical to our success Are there any areas that your global markets, along with the depth and liquidity has also been our ongoing investment in our people firm intends to grow significantly of the market, and we expect that to remain a and technology." in the next 12 months? strong area for our revenue." Indeed, Ireland says that most of its business Strong position lines are performing well. "So far this year, nearly Bird adds that there is more to come, particularly all areas of our core UK business are ahead of last in CBRE's capital markets division. "We continue year," he says. "There are a lot of opportunities out to grow and enhance all areas of our UK business, there to align with our clients." whether it be our new small-caps team targeting In terms of other areas for future growth, sub-£10m deals, our UK-wide development and Ireland references both alternative markets and an residential capital markets team or our capital increasing focus on technology. advisers capability, which enables us to provide "Alternatives is a key growth area as we are unrivalled optionality and innovative financial predicting that the sector is expected to see solutions," he says. Are there any areas where your returns of 7% compared to 4% for commercial "We are experiencing increasing demand company intends to reduce property," he says. "We are also focusing on organic from clients for one-stop integrated services. capacity in the next 12 months? growth and are getting ahead of the curve in the Our move to bring all of our advisory and tech and digital space." transactions services together as single team 2% One big name that doesn't feature on the UK last year means that we are strongly positioned list is BNP Paribas Real Estate, which elected to deliver for them." not to provide UK figures but instead chose to supply numbers for its Europe-wide operations. The company stated that changes to the way its it Critical financial results are reported, coupled with various currency shifts, meant the numbers would not be to our success comparable with previous years. has been our However, the European figures are impressive. While BNP Paribas RE comes in fourth after Savills V, investment in How do you foresee your total in terms of total revenue, it takes the second spc^'t our people and staff numbers changing over when it comes to growth. In the past year, total . Ciaran Bird, European income - which for BNP Paribas RE is i CBRE the next 12 months? technology also global income - increased by 19%, from £507m to £601m. JLL's figures aren't quite as stratospheric as "It was a year of good progress against a difficult CBRE's, but they are still sufficient to attract backdrop," says BNP Paribas RE chief executive John envious glances from most other firms. In the UK, Slade. "We launched key international business revenues grew from E597m to £765m, or 28%, lines led from the UK in retail, logistics and real while across EMEA income was up 11% to £1.4bn. estate occupier solutions, as well as a UK leisure Globally, however, the company surpassed even team and new homes business." CBRE in terms of growth, with worldwide revenues Slade cites industrial and office agency deals in up 30%, from £3.9bn to £5.09bn. the UK as other important factors in the company's "The results suggest that the uncertainty growth story. following the EU referendum has not had a long- "We completed some of the largest industrial term impact on the resilience of the UK economy and office agency deals in the market including the and the property sector," says Chris Ireland, UK largest London office deal since 2013 of 513,000 sq chief executive at JLL ft at Canary Wharf, and took greater market share, JLL's last financial year came to an end in completing £2bn of investment deals, including December, but Ireland says the high levels of some major London transactions through our business have continued into 2017. 'The London Asia platform." office investment market had a record-breaking Falling just outside the 10 biggest UK agents, »

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Top 40 firms ranked by revenue per fee-earner

Ranking Ranking Company Latest UK Number of Total UK staff UK revenue 2017 2016 revenue per UK partners/ per head(£) fee-earner(£) fee-earners

1 1 Beauchamp Estates (Mayfair) 653,286 7 17 269,000

2 - Making Moves 609,617 1 5 121,923

3 2 CVS (Commercial Valuers St Surveyors) 577,183 52 176 170,531

4 7 The Lorenz Consultancy 418,938 4 11 152,341

5 6 Robert Pinkus St Co 330,000 5 9 183,333 6 23 Strutt St Parker 318,425 332 930 113,674

7 - Johnson Fellows 312,500 8 31 80,645 8 4 Knight Frank 272,000 1,102 2,124 141,000

9 - Davis Coffer Lyons 244,444 27 41 160,976 10 13 Allsop 221,791 201 269 165,725

11 5 JLL 221,674 3,409 4,807 157,216 12 19 Gerald Eve 213,000 330 441 135,000 13 8 Savills 212,402 2,723 5,136 112,597 14 15 Deloitte Real Estate 209,496 696 758 192,421 15 18 Mason Partners 205,583 24 42 117,476 16 9 GVA 205,000 905 1,411 132,000 17 14 Underwoods 182,332 6 15 72,934 18 16 Colliers International 180,000 600 780 138,000 19 22 Alder King 177,177 78 g^J 126 109,681 20 26 Brown St Lee Chartered Surveyors 176,667 12 18 117,777 21 28 Dacre Son St Hartley 176,000 39 128 54,000

22 - Legat Owen 170,000 18 38 80,000 23 29 Barker Storey Matthews 168,420 19 38 84,210 24 20 Lamberts Chartered Surveyors 158,736 19 33 91,394

25 27 Fleurets 153,784 33 69 73,549

26 B- Lambert Smith Hampton 147,000 675 1,161 86,000 27 31 Carter Jonas 146,732 376 524 105,289 28 32 Bidwells 143,500 305 441 95,300 29 39 Mason Owen 140,006 43 84 71,595

30 - SAY Property ( 134,882 6k 6 115,614 31 34 Strettons 132,431 68 105 85,758

32 38 Malcolm Hollis 129,986 224 284 102,524 33 30 Roger Hannah St Co 129,500 24 47 66,128 34 35 Rapleys 122,680 97 104 114,423 35 36 Sanderson Weatherall 120,000 121 205 71,000

36 - Caxtons 112,683 41 93 49,677

37 40 Ryden 109,000 110 148 81,000

38 - Capita Property and Infrastructure 100,500 1,625 2,130 76,700

39 - Goadsby Group 83,597 154 215 59,879 40 Graves Son St Pilcher 67,750 12 18 30,100

Average 214,718

Reproduced by Gorkana under licence from the NLA (newspapers), CLA (magazines), FT (Financial Times/ft.com) or other copyright owner. No further copying (including printing of digital cuttings), digital reproduction/forwarding of the cutting is permitted except under licence from the copyright owner. All FT content is copyright The Financial Times Ltd. Article Page 5 of 7 394720470 - TWAMAY - B16619-1 Source: Property Week {Main} Edition: Country: UK Date: Friday 30, June 2017 Page: 33,34,35,3 Area: 3760 sq. cm Circulation: ABC 12704 Weekly Ad data: page rate £2,185.00, scc rate £48.00 Phone: 020 7921 5000 Keyword: Beauchamp Estates

Gerald Eve also had a good year, with the de facto specialists - and will continue to bring in new talent takeover of Deloitte Real Estate's capital markets It was a that can benefit clients and the firm." division helping to boost its numbers. Overall, the Some smaller firms also saw substantial revenue company saw revenues increase by 14%, from year of good growth, not least MJ Mapp (23%), Matthews & £54m to £62m. Goodman (30%) and Roger Hannah & Company "Our growth over the past year has been progress * (31%). But given the size of these firms, such a mixture of organic expansion in the firm's against a figures, impressive though they are, have little traditional strengths and a step-change in our impact on the results for the overall market. investment and agency offer," says Simon Prichard, difficult Instead, it seems the reality for a majority of senior partner at Gerald Eve. "The successful backdrop companies is either weak or negative growth. integration of new and existing teams has been a key part of this growth. The acquisition of Less bullish sentiment transactional staff in 2016 has both broadened and The change in mood is also represented in the deepened our revenue base." ii The qualitative data. Last year, 35% of respondents said that they expected their firm to see M&A Growth strategy acquisition of activity in the year ahead, with another 35% Gerald Eve's traditional service lines include both transactional saying they didn't. This year, the equivalent figures planning and business rates - and on the latter are 29% and 49% - a clear indication of a less it would be surprising if the company hasn't staff has bullish sentiment in the industry. benefited from the wide exposure it has achieved deepened our So while it is tempting to use the headline in the past year. In the fallout from the 1 April 16% revenue growth figure to paint a rosy revaluation and the ongoing storm surrounding revenue base picture of the health of the overall market rates reform, it has been difficult to miss Gerald the truth is that statistic is being distorted by Eve's voice. "Service lines such as planning and on its acquisition of the Deloitte team. "We've some truly remarkable growth figures at the very development and business rates have continued to shown that Gerald Eve is both willing and able to biggest companies in the sector. Taken in the perform strongly," confirms Prichard. seize an opportunity when it is presented," he says. round, this year's report is far less positive than He adds that Gerald Eve is continuing with its "For example, just this month we have recruited was the case last year. So much for shrugging growth strategy, in particular seeking to capitalise three new investment asset management off Brexit. •

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Top 10 firms ranked by European revenue

Ranking Ranking Company Latest Previous Change Proportion Number of Number of Number of Total Year end 2017 2016 European year's (%) of revenue European European affiliated European revenue European from the offices staff offices in staff (£m) turnover (£m) UK (%) Europe

1 1 CBRE Group 130% 48.4 150 21,650 58 24,025 31/12/2016

2 2 JLL* 11% 45 88 14,322 - - 31/12/2016

3 3 Savills 9% 77 165 6,239 71 - 31/12/2016

A A BNP Paribas Real 19% - 180 3,900 20 7,000 31/12/2016 M- *t Estate 5 6 Knight Frank 0% 86 104 2,792 61 3,181 31/03/2017

5 Capita Property - 100 - - - - 31/12/2016 and Infrastructure

7 7 Strutt & Parker -2% 100 57 930 - 930 30/04/2017

8 8 Gerald Eve 14% 99 9 441 23 699 05/04/2017

9 m • CarterJonas 7% 100 - - - 524 30/03/2017

10 - Bidwells 100 31/12/2016

TOTAL 4,275 50%

*Figures only available for EMEA Top 10 firms ranked by global revenue

Ranking Ranking Company Latest Previous Change (%) Number of Number of Number of Total staff Year end 2017 2016 global year's global global global staff affiliated worldwide revenue turnover offices offices (£m) (£m) globally

1 1 CBRE 10,269 8,545 20% 450 75,000 100 79,200 31/12/2016

2 2 JLL 5,086 3,907 30% 300 75,884 - w 31/12/2016 flHH 3 3 Colliers International 1,924 1,720 12% 267 11,400 129 15,000 31/12/2016

4 4 Savills 1,446 1,284 13% 255 32,361 455 - 31/12/2016 BNP Paribas Real 5 5 601 507 19% 180 3,900 20 7,000 31/12/2016 Estate 6 6 Knight Frank 566 540 5% 160 7,626 255 15,577 31/03/2017 Capita Property and 7 - 163 ------31/12/2016 Infrastructure

8 8 Strutt St Parker 106 108 -2% 57 930 - 930 30/04/2017 Lambert Smith 9 - 102 100 1% 34 1,183 - 1,183 31/12/2016 Hampton 10 9 Gerald Eve 62 54 14% 9 441 100 1,707 05/04/2017

TOTAL 20,325 16,764 21%