Prudential’s brokerage unit sold
Prudential Financial Inc., the 136 year old American company has sold its real estate brokerage and relocation business to Brookfield Residential Property Services, a division of Brookfield Asset Management, Inc., for roughly $110 million.
Prudential Financial Inc. said in a statement that the deal excludes a financing subsidiary with investments in some brokerage franchises. According to Bloomberg, the acquisition makes Brookfield Residential the second largest global relocation operation and third largest residential real estate brokerage in North America, having already acquired Real Living and GMAC Real Estate.
Some franchise agreements will allow select brokerages to operate under the Prudential brand, but the companies did not release which ones or how many are subject to continuing on with the Prudential name. One source close to the brokerage told us that Prudential franchisees will keep the Prudential branding until their franchise agreements expire or until they agree to rebrand as Real Living.
According to their SEC filing, as of the end of the third quarter, Prudential’s real estate brokerage and relocation business had a net book value of roughly $25 million. Brookfield Asset Management says they manage roughly $150 billion, with interests in residential and commercial property, along with energy holdings and infrastructure projects.
Prudential Financial has been a headline grabber for focusing more on their life insurance and retirement products and selling off assets in recent years.