Cendant Corp. today announced it has acquired the residential real estate brokerage operations of Sotheby’s International Realty and entered into an agreement with Sotheby’s for a 100-year term. The term consists of an initial 50-year term and a 50-year renewal option, whereby Cendant will license the Sotheby’s International Realty brand in exchange for a licensing fee to Sotheby’s.
The total cash purchase price for the company-owned real estate brokerage operations, as well as the license agreement, was approximately $100 million, plus an ongoing license fee based on future royalties from the development of the Sotheby’s International Realty franchise system and company-owned operations.
Sotheby’s International Realty will operate under two business units. The company-owned residential real estate brokerage operations will be owned and operated by NRT Inc. Stuart Siegel, former president and CEO of Sotheby’s International Realty, now becomes senior vice president for NRT with responsibility for the company-owned operations, which do business as Sotheby’s International Realty.
Cendant also announced that Michael R. Good has been appointed as the president and CEO of Sotheby’s International Realty Corp., the entity responsible for servicing the current affiliate network, as well as the development of the franchise system. Good is a 27-year real estate industry veteran who most recently served as NRT’s executive vice president and chief operating officer.
European offices and affiliates will continue to operate under the Sotheby’s International Realty name, managed by current leadership. These operations will not become part of the Cendant family at this time.
New York City-based Cendant Corp. (NYSE: CD) is primarily a provider of travel and residential real estate services to business and consumers in more than 100 countries.
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