CBRE Realty Finance, an indirect subsidiary of CB Richard Ellis Group Inc., has reported a third-quarter net loss of $55.5 million and has decided to end its affiliation with CB Richard Ellis Group.
After exploring numerous possible alternatives, the company's board of directors and management decided that it would be in the best interest of the stockholders to internalize management. Thus, it has been mutually determined by CBRE Realty Finance and CB Richard Ellis Group Inc. that the management agreement will not be renewed when it expires on December 31.
‘We believe that becoming an internally managed company is the right decision,’ says Kenneth J. Witkin, president and CEO. ‘We have the depth and resources to fulfill the full range of functions needed to operate as an internally managed company. We appreciate the sponsorship and support of CB Richard Ellis. We have a good relationship with CB Richard Ellis, and we expect to continue to do business with them as well as with other commercial real estate firms.’
Source: CBRE Realty Finance
