Brookfield Asset Management remains a partner in new brand.
Brookfield Asset Management’s U.S. franchise brands, Prudential Real Estate and Real Living, are being rolled up into a new franchise brand with 53,000 agents — Berkshire Hathaway HomeServices — by their new majority owner, Berkshire Hathaway Inc. affiliate HomeServices of America Inc.
HomeServices has formed a joint venture, HSF Affiliates LLC, to operate the Real Living and Prudential Real Estate affiliate networks and the future Berkshire Hathaway HomeServices brand. HomeServices is the majority owner of HSF Affiliates, with with Brookfield Asset Management a joint owner. Terms of the deal were not disclosed.
“Berkshire Hathaway HomeServices is a new franchise brand built upon the financial strength and leadership of Brookfield and HomeServices,” said Warren Buffett, chairman and CEO of Berkshire Hathaway Inc. in a statement. “I am confident that these partners will deliver value to the residential real estate industry, and I am pleased to have Berkshire Hathaway be a part of the new brand.”
Berkshire Hathaway HomeServices will be based in Irvine, Calif., with the brand coming online in 2013, the companies said.
“We are honored and proud to be entrusted with the use of the Berkshire Hathaway name as our new real estate franchise brand,” said Ron Peltier, chairman and CEO of HomeServices.
Berkshire Hathaway HomeServices will be led by Earl Lee, who will serve as chief executive officer; Stephen Phillips, chief operating officer; Brian Peterson, chief financial officer; and Aleya Chattopadhyay, chief marketing officer.
The nation’s second-largest brokerage firm, Minneapolis-based HomeServices owns 26 brokerages in 21 states, including nine that are affiliated with Prudential Real Estate. Last year, the company’s 16,000 sales associates handled sales of homes valued at nearly $32 billion.
Three of the company’s Prudential-affiliated brokerages were acquired this year: Portland, Ore.-based Prudential Northwest Properties, acquired in February; Seattle-based Prudential Northwest Realty Associates, acquired in April; Prudential Connecticut Realty, also acquired in April. The six other HomeServices brokerages affiliated with Prudential Real Estate are and Prudential California Realty (Southern California), Prudential First Realty (Iowa), Prudential Rhode Island Realty, Prudential Carolinas Realty, Prudential York Simpson Underwood Realty (North Carolina) and Prudential Yost and Little Realty (North Carolina).
By Inman News, Tuesday, October 30, 2012.