Prudential sells residential real estate division to Toronto-based company

What does this mean for the real estate industry? How will this change the dynamic of name recognition for a trusted Real Estate Company? Prudential has been a great real estate company umbrellaed under a financial services company, but how will the sale of their real estate arm affect their agents and their customers? Only time will tell. Century 21 has always been the most recognized name in Real Estate and we will continue to be here for you.

Prudential Financial is ending a more than two decade foray into the residential real estate business with yesterday’s sale of its realty brokerage and relocation services unit to a Toronto-based company.

The proceeds from the sale of Prudential Real Estate and Relocation Services to Brookfield Residential Property Services, before transaction-related expenses, were approximately $110 million, according to the SEC filing. BRPS is a division of Brookfield Asset Management, and the sale marks its third since coming to the U.S. market in 2008, the company said.

“This transaction creates a global employee relocation services and real estate franchising leader,” said Graham Badun, CEO of Brookfield Residential Property Services. “We have now increased the breadth and depth of our service offering, keeping pace with the evolving needs of our clients around the world.”

The acquisition makes Brookfield the second largest global relocation services provider and third largest residential real estate brokerage in North America, Badun said. Together, the relocation services divisions of Brookfield and Prudential work with more than one-third of Fortune 100 companies, and Brookfield is now the largest provider of relocation services to government, with long term relationships with the United States and Canada.

The Prudential name will stay with the franchise for the time being, but ultimately Brookfield will develop a new branding strategy, Badun said. Employees won’t notice any changes and it will be business as usual, he added.

“We’re going to spend some time with the networks better understanding what the overall requirement is,” Badun said. “We have the Prudential name under license (and) we think it’s a great name, and we look forward to working with the franchisees in that network.”

Prudential, which was founded and is based in Newark, started its real estate brokerage business in 1987, and a spokesman said the sale meant the financial services company can focus on other aspects of its business.

“The decision to sell this business reflects both the company’s strategic focus on its investment, retirement and insurance business, as well as the belief that the acquisition by Brookfield Residential Property Services is a compelling opportunity for Prudential Real Estate and Relocation services, and its clients and affiliates,” said Simon Locke.

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