DTZ Rockwood’s demise seen as one of first of many amid ongoing deal drought.
(Source: Crain’s New York Business)
DTZ Rockwood, a real estate investment banking firm, filed for bankruptcy protection last week, a victim of the industry deal drought and a change in its ownership.
DTZ said that historically it has received 70% of its revenues from brokerage fees from property sales and financing. However, that business has come to a standstill because of the recession. The company estimated in the filing that its revenues for the fiscal year ended in April will have plunged 32% from the year-ago period to $15.9 million. That represents a 62% plummet from the $41.3 million in revenues the company posted for the fiscal year ended in February 2006. (The company changed its fiscal calendar in 2006).
“I think this is a sign of the times,” said Mark Edelstein, a partner at the law firm Morrison & Foerster. “I think you’ll see other smaller, ancillary real estate companies start to file.
Read Theresa Agovino’s full article “Real estate investment bank goes bust” in Crain’s New York Business (June 2, 2009).