CBRE Wins MemorialCare Health System Service Contract
Ushering in good news for its shareholders, CBRE Group, Inc. (CBG) announced that it has been chosen for providing real estate services to Southern California’s MemorialCare Health System.
A multi-year contract has been sketched and under it, services like strategic real estate planning, property and transaction management, lease administration as well as real estate accounting expertise would be offered by CBRE Healthcare Group for MemorialCare’s 85-location outpatient portfolio.
As a matter of fact, healthcare-facility owners are aggressively vying for expansions and refurbishments to meet the rising demand of their patient population. Healthcare facilities are seeking cost reductions as well as risk minimization in terms of both operations and capital projects, simultaneously aiming to raise the quality and efficiency level of their facilities. This, in turn, is driving the demand for specialized real estate services focused on healthcare facilities.
To leverage the opportunities, CBRE possesses its own healthcare platform – CBRE Healthcare Group – that offers real estate services to over 60 major healthcare systems with its portfolio spanning 109 million sq. ft. Right through North America, this unit manages leases of above 8,300 physician practice groups.
Last month, CBRE Group reported third-quarter 2014 adjusted earnings of 40 cents per share, 4 cents ahead of the Zacks Consensus Estimate and up 33.3% year over year. Results were driven by solid growth in revenues across all global regions.
CBRE Group currently carries a Zacks Rank #2 (Buy). Investors interested in the real estate industry may also consider stocks like Sun Hung Kai Properties Ltd. (SUHJY), Jones Lang LaSalle Inc. (JLL) and Kennedy-Wilson Holdings, Inc. (KW). While Sun Hung Kai Properties sports a Zacks Rank #1 (Strong Buy), both JLL and Kennedy-Wilson hold the same Zacks Rank as CBRE Group.
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