CBRE to buy Telford Homes for £267.4m

Under the terms of the deal, CBRE will pay 350p per share in cash for each Telford share, which is an 11% premium to the stock's closing price on Tuesday.

Once the deal completes, Telford will operate as part of the Trammell Crow Company and its financial results will be reported within CBRE's real estate investments business segment

CBRE's president and chief executive, Bob Sulentic, said: "Telford gives us a compelling opportunity to build on the success of Trammell Crow Company.

"The UK is in the early stages of a secular shift toward institutionally owned urban rental housing, similar to what we have seen in the US over the last two decades. Telford is well positioned to lead this trend, and their more than 300 talented professionals operating in London are a great addition to our company."

Telford's CEO Jon Di-Stefano - who will continue to run the business after the acquisition closes - said: "Being part of Trammell Crow Company will allow Telford to enhance its growth in the build-to-rent /multifamily market in London.

"Our management team have found that Trammell Crow Company is aligned with both our culture and our current strategy and its platform will give Telford access to far greater resources, improved technology and wide-ranging expertise."

At 1010 BST, Telford shares were up 12% at 353p.

Russ Mould, investment director at AJ Bell, said the bid suggests that CBRE firmly buys into Telford’s strategic thesis that demand for good-quality rental properties in London continues to outstrip supply.

"It could turn out that the bidder is getting a bargain, so at least the valuation could put a floor under a sector where share prices have largely lost their way of late, despite record profits and fat dividend yields," he added.