Savills buys Eastdil Secured in $1bn deal to expand US real estate investment bank

Savills has agreed a $1 billion deal to acquire US property investment bank Eastdil Secured, marking a major move aimed at strengthening the British real estate group’s presence in the lucrative US market.

The London-listed property adviser will pay about $921 million for the business in a transaction that includes both cash and shares. About $553 million will be paid in cash, while about $369 million will be paid in Savills shares offered to Eastdil’s existing investors, including Singaporean wealth fund Temasek, Guggenheim Partners and a group of major shareholders.

The acquisition represents the first major deal under Savills’ new chief executive Simon Shaw, who took over from Mark Ridley in early 2026. Shaw described the combination as “a marriage made in heaven”, highlighting the long-standing relationship between the two companies in the real estate industry.

Eastdil Secured is widely regarded as one of the most influential advisors in the global financial markets sector. The firm specializes in advising large real estate owners, developers and institutional investors on the sale of high value properties, financing arrangements and complex investment transactions. Its client base includes large real estate investors and private companies.

By bringing Eastdil into the group, Savills aims to significantly deepen its presence in the United States, the world’s largest real estate investment market, where the company has historically had a limited presence compared to Europe and Asia.

Shaw said the acquisition fills a strategic gap in Savills’ global platform. Although the company enjoys strong market positions in many global markets, the US has always been the most important region where its capabilities were relatively underdeveloped.

He said: “We have a large market share in many parts of the world, but one hole in our network is the US. Eastdil is a leading capital markets company in the largest real estate investment market in the world and provides direct access to deep pools of capital.”

Savills believes the combined entity will allow it to compete more aggressively for high-value real estate advisory mandates, including mergers and acquisitions involving property portfolios, major financing deals and global investment transactions.

The acquisition was announced alongside Savills’ latest financial results, which showed the company continues to grow despite a challenging global economic climate marked by political tensions, inflation and macroeconomic uncertainty.

For the year ending December 2025, Savills reported revenue of £2.55 billion, up from £2.40 billion last year, representing growth of 6 per cent.

Pre-tax profits rose 14 per cent to £101 million, compared with £88.3 million in 2024. The company attributed the increase in part to strong demand for its non-commercial services, including investment management, consulting and property management.

These divisions now account for the majority of Savills’ profits, reflecting an industry-wide shift away from reliance solely on property development to advisory and property management services that provide more stable income streams.

Profits from these reduced operations increased by 8 percent annually, while revenue directly linked to real estate transactions increased by 4 percent.

Savills said the middle half of 2025 was a major challenge for deal performance as investors delayed decisions amid global tax disputes and uncertainty surrounding monetary policy ahead of the UK government’s budget.

However, the company experienced a significant drop in activity towards the end of the year. Shaw described December as “surprising”, suggesting that more investors would return to the market once political uncertainty eased and the budget was delivered.

He said investors are increasingly adapting to a world characterized by global tension and economic instability.

“Both residents and investors have begun to accept that political change is on the way,” Shaw said. “There comes a time when you have to continue investing and doing business despite the backdrop.”

Savills also reported that the strong momentum seen in late 2025 continued into the early months of 2026. While the firm admitted it was still difficult to assess the full impact of the ongoing conflict in the Middle East, it said there had been little immediate disruption to investment activity around the world.

According to Shaw, London could benefit from rising investor capital if global volatility continues, as capital has historically flowed towards markets considered stable and secure.

“I think it’s likely that capital will lean a little bit more toward traditional safe havens,” he said. “It would make sense for investors to feel more comfortable investing in markets where legal systems and institutions are well established.”

Savills’ board also approved a higher shareholder payout following improved financial performance. The company raised its final dividend by 8 per cent to 15.7p per share, payable in May, while also declaring a dividend of 10.7p per share.

Despite the strategic reasons for the Eastdil acquisition, investors initially reacted cautiously to the announcement. Shares in Savills fell 7.2 per cent, closing up 72p at 930p on the day the deal was revealed.

Founded in 1855 by surveyor Alfred Savill, the firm has grown from a traditional agency serving wealthy landowners to become one of the world’s largest property advisory groups.

Although most known to the public as a residential agent, the residential business accounts for only about a tenth of Savills’ total business. The majority of revenue now comes from commercial real estate services such as advising investors, renting office space, managing properties and providing consulting to institutional clients.

Savills has expanded internationally through a series of acquisitions over the past three decades, establishing operations across Europe, Asia, the Middle East and Australia. However, the United States remains the last major real estate market where its presence lags behind its competitors.

Therefore, the acquisition of Eastdil Secured is expected to play a key role in Savills’ long-term strategy to build a global real estate advisory platform that can compete with the major property consultancies and investment banks in the sector.