Deloitte UK has expanded its real estate consulting arm with the addition of established property advisory firm Drivers Jonas.
The group, which will trade as Drivers Jonas Deloitte, will have combined annual revenue of more than £110 million ($177 million) and will form part of Deloitte’s £200 million real estate industry team.
The firm said it had identified a major growth opportunity to extend its capabilities in the real estate advisory market, which was valued at approximately £2 billion in 2009. The real estate group is expected to double in size within the next three years.
The 650 Drivers Jonas partners and staff based in London, Slough, Birmingham, Manchester, Leeds, Glasgow, Edinburgh, Paris and Frankfurt will join Deloitte to provide real estate advisory and transaction expertise to clients.
It is understood no job losses are expected as a result of the integration, which is set to begin in June.
Drivers Jonas managing partner Nick Shepherd will become managing partner of Drivers Jonas Deloitte and will join the Deloitte executive team. Shepherd believes the move to Deloitte will help the business grow.
“The merger of our partnership with Deloitte provides our real estate teams with a fantastic platform from which to build our advisory business and further develop our service offering in the capital markets,” he said.
Deloitte senior partner and chief executive John Connolly said the firm has worked closely with Drivers Jonas for several years.
“We also see a clear opportunity to combine the skills of our specialists in tax, corporate finance, business consulting and our real estate strategy team with the Drivers Jonas team, which has an outstanding reputation for providing the highest quality independent advice in this market,” Connolly said.
“Drivers Jonas is notable for the scale and strength of its transaction and advisory services and the quality and independence of its real estate research, making it the obvious choice to significantly extend Deloitte’s real estate offer to our clients.”
The transaction is expected to be completed in March 2010. Earlier this month, Deloitte revealed it would acquire ReportSource, a business performance and information management consultancy.