Cbre Group Inc · NYSE:CBRE
Cbre — CB Richard Ellis Group — Investor Day (May 2006)
50 slides from Cbre's investor day presentation, May 17, 2006
Slide 1: Case Study: CIT Group Inc.
Mary Ann Tighe Chief Executive Officer New York Tri-State Region Business Review Day Case Study: CIT Group Inc. May 17, 2006 Exhibit 99.12
Slide 2: Hypothetical Situation: evaluate the facts and determine what you would do
Evaluate the following facts and determine what you would do: June, 2004 A new CEO of a Fortune 500 financial services company Offices reflect long history of cost containment and thrift • Split operation with HQ in a suburban, secondary market • 180,000 RSF “sales” office in Manhattan has a lease e
Slide 3: Hypothetical Situation: what a typical firm would do
Hypothetical Situation Typical firm would: 2004: Do nothing Q3, 2005: Begin a study to identify strategic occupancy options 2006: Hire real estate broker to: • Identify space options for 180,000 RSF • Target late 2006 / early 2007 for lease signing Q4, 2008: Move into new space Q4, 2008: Relinquish
Slide 4: 100" CBRE
100" CBRE CB RICHARD ELLIS
Slide 5: CIT Group, Inc.
CIT Group, Inc. CIT Group, Inc. 1908 - Founded as Commercial Credit Investment Company. 1984 - Manufacturers Hanover Bank purchased CIT from RCA 2002 - Tyco International spins off CIT in IPO Fortune 500 Company – NY Stock Exchange listed (CIT) $10.7 Billion market cap 6,000 employees worldwide
Slide 6: Core Business
Core Business: • Asset-based lending to mid-cap companies Business Lines: • Specialty Finance Commercial (commercial lending/leasing) • Specialty Finance Consumer (home lending, student loans, etc.) • Commercial Services (trade finance—retail and factoring) • Corporate Finance • Equipment (middle ma
Slide 7: Headquartered Miles West of Manhattan
Headquartered 25 Miles West of Manhattan
Slide 8: 1211 Avenue of the Americas
1211 Avenue of the Americas
Slide 9: June 2004: Peek appointed CEO of CIT
2004 2005 2006 June 2004 Peek appointed CEO of CIT
Slide 10: 2004: New Leadership / New Mandate
2004: New Leadership / New Mandate One CIT Revolutions Per Minute (RPM) Return on Equity (ROE) People Access
Slide 11: T T T T T T T T T T T T
T T T T T T T T T T T T 2005 2006 JOO CBRE oa 2006 CB RICHARD ELLIS
Slide 12: Interviews with key CIT leaders
Interviews with key CIT leaders ACENTURY OF SeRvICE T 2005 T T 2006 CBRE CB RICHARD ELLIS
Slide 13: Framework For Analysis
Different types of space for different functions Different levels of profitability in business segments Different nature of personnel Framework For Analysis
Slide 14: Key Findings
Key Findings Inconsistent space standards Poor cross-selling environment Real estate tarnishes image Outlying headquarters
Slide 15: Strategy
Strategy Incorporate findings into space planning Improve space/energy Proactively address lease/location issues Contribute to cultural change Maintain cost controls
Slide 16: Options
Options Renew and restack at 1211 Avenue of the Americas ? Consolidate NJ and NY offices in one location? Consider split operation? Livingston 1211 Avenue of the Americas
Slide 17: Fifth Avenue opportunity identified
August] October 2004 | Interviews 505 Fifth Avenue with key CIT opportunity leaders identified T T T T T T T T 2004 2005 2006 OQ se CBRE oa 2006 CB RICHARD ELLIS
Slide 18: New Opportunity Fifth Avenue
“Brand” New Opportunity 505 Fifth Avenue
Slide 19: Benefits to Enjoy: Major Transportation Arteries
Benefits to Enjoy Major Transportation Arteries
Slide 20: OO se CBRE
OO se CBRE CB RICHARD ELLIS
Slide 21: Issues
505 Issues Expensive Small floorplates Landlord history
Slide 22: CBRE's Negotiating Expertise
CBRE’s Negotiating Expertise Extensive coverage of delivery conditions Late delivery ramifications Real estate tax protection Comprehensive expansion rights Exit strategy
Slide 23: Meet with Jamestown concerning disposition of 1211 space
June 2{| August] October 2004 February 2005 Peek al] CBRE (| Interviews 505 Fifth Avenue Meet with Jamestown CEO off with key CIT opportunity concerning disposition leaders identified of 1211 space T TT T T T T 2004 2005 OQ se T 2006 CBRE CB RICHARD ELLIS
Slide 24: Disposition Challenges
Disposition Challenges 1211 Avenue of the Americas JP Morgan Chase News Corporation
Slide 25: Disposition Challenges: The Players
Disposition Challenges The Players
Slide 26: CIT signs lease for 130,000 sf at 505 Fifth Avenue
June 24 August) October 2004 February 2005 Peek al CBRE q Interviews 505 Fifth Avenue CIT and Stawski sign CEO of with key CIT ‘opportunity lease for 130,000 sf leaders identified 506 Fith Avene. T T T T TT T T 2004 2005 2006 100." CBRE CB RICHARD ELLIS
Slide 27: ACENTURY OF SeRvICE
100 ACENTURY OF SeRvICE June 2if August| October 2004 February 2005 | June 200] June 2005 Peek a CBRE ¢ interviews 505 Fifth Avenue | Meet with CIT and Sta\] CBRE and Jamestown CEO of with key CIT opportunity concernin] lease for 13C] exchange proposals to leaders identified of 1211 s}] at 505 Fifth
Slide 28: June August] October 2004 February 2005
June 2 August] October 2004 February 2005 | June 200f June 2005 | CBRE ¢ Interviews with key CIT leaders 505 Fifth Avenue opportunity identified Meet with] CIT and Sta concemnin] lease for "34 of 1211 si at 505 Fifth 4 T T T T T T 2004 2005 OQ se T T 2006 CBRE CB RICHARD ELLIS
Slide 29: Hiding in Plain Sight
Hiding in Plain Sight Elevator Floor Bank RSF Tenant LXD 2,197 Available Immed. 2,197 Available Immed. 7,779 KS Management (3,157) Tennis Channel (4,622) Various 9,834 Goldsmith, Agio & Helms 2010 10,466 Robert Allen Group 7/2015 10,459 Available 20,185 Valentino (16,185) Marzato USA Corp. (4,000) N
Slide 30: 100s=== CBRE
100s=== CBRE CB RICHARD ELLIS
Slide 31: Hiding in Plain Sight
Hiding in Plain Sight Disposition Agreements Radio Silence
Slide 32: June August] October 2004 February 2005 J June 200} June 2005 [vevst ‘September 200]
June 24 August] October 2004 February 2005 J June 200} June 2005 [vevst ‘September 200] Peek al CBRE 4 Interviews 505 Fifth Avenue | Meet with} CIT and Stay] CBRE <| CBRE finds 11 | CIT signs agreement CEO of with key CIT ‘opportunity concernin] lease for 130) exchand begins confiden} to dispose of
Slide 33: August] October 2004 | February 2005 sone 200] June 2005 August | September 20
August] October 2004 | February 2005 sone 200] June 2005 August | September 20 October 2005 J CBRE 4 interviews with key CIT leaders 505 Fifth Avenue opportunity identified CIT signs agreCIT and TSP sign to dispose of ¢ lease for 110,000 sf at 1214 in 200} T T T T T T T T T T T T T 2004 2005 100: 20
Slide 34: CBRE Creates CIT Campus in Midtown
CBRE Creates CIT Campus in Midtown
Slide 35: Begin sale process for CIT stake in Waterside Plaza
Begin sale process for CIT stake In Waterside Plaza sane 2 uae October 2004 | February 2005 | sre 200 June 2005. August Sepember 200] October 2005 | December 2005 Peek al CBRE | Interviews with key CIT leaders 505 Fifth Avenue opportunity identified Meet wit] CIT and Stal] CBRE | CBRE finds 11 | cit
Slide 36: Waterside Plaza
Waterside Plaza Only residential property on Manhattan’s East River 1471 rental units including 20 town homes 3000 residents 720 car garage Two acre plaza with retail shops
Slide 37: CIT had 50% interest in Waterside Plaza
CIT had 50% interest Sale faced complicated issues • Tax • Legal • Financial CBRE’s New York investment sales team led effort Waterside Plaza
Slide 38: Sale of CIT's interest in Waterside Plaza
January 2005 Begin sale process for CIT stake In Waterside Plaza Sale of CIT's interest in Waterside Plaza for $115 million pre-tax gain June 24 August] October 2004] February 2005 [me 200f ‘June 2005 August September 200{ October 2005 | December 2005 Peek al CBRE Interviews 505 Fifth Avenue | Meet
Slide 39: Phoenix lease by CIT for 85,000 square feet
Phoenix ~ Lease by CIT for 85,000 square feet January 2005 August 2005 Begin sale process Sale of CIT's interest in for CIT stake Waterside Plaza for In Waterside Plaza $115 milion pre-tax gain June af August] October 2004 | February 2005 | ‘June 200] June 2005 | August] September 200] October 2005
Slide 40: Europe: European Transactions
Europe European Transactions United Kingdom Sweden Netherlands France Italy Germany Ireland
Slide 41: Dublin lease signed
Dublin lease signed July 2005 Phoenix ~ Lease by CIT for 85,000 square feet January 2005 August 2005, Begin sale process Sale of CIT’s interest in for CIT stake Waterside Plaza for In Waterside Plaza $115 milion pre-tax gain sine 2f Avs October 2004 | Feovey 2005 [oe 200] June 2005 |f August Septemb
Slide 42: Disposition completed in Munich
Dublin leas} Disposition completed in Munich July 2005 Phoenix ~ Lease by CIT for 85,000 square feet January 2005, August 2005 Begin sale process Sale of CIT's interest in for CIT stake Waterside Plaza for In Waterside Plaza $115 million pre-tax gain June 2] August) October 2004 February 2005 June 2
Slide 43: Disposition in Lyon, France
Apri 2008 Dublin leas} Disposition} Disposition in Lyon, France Phoenix Lease by CIT for 85,000 square feet January 2005 August 2005 Begin sale process Sale of CIT's interest in for CIT stake Waterside Plaza for In Waterside Plaza $415 million pre-tax gain June gi August] October 2004 | February 200
Slide 44: European real estate due diligence
January 20} April 2005 Dublin tea: in Munich | France May 2005 | Disposition] Disposition} Begin due diligence of | European realestate assets from Citi Capital acquisition July 2005 | Phoenix — Lease by CIT for 85,000 square feet January 2005 August 2005 Begin sale process for CIT stake In Watersid
Slide 45: Stockholm
January a April 2005 | May 2005 [une 2005, | Begin due diligence of | Stockholm European real estate as from Citi Capital acquisit] July 2005 Phoenix — Lease by CIT for 85,000 square feet January 2005 | August 2005 Begin sale process Sale of CIT's interest in for CIT stake Waterside Plaza for In Wat
Slide 46: Milan
January 20} April 2005 | May 2005 | June 2005 October 204 Dublin leas} Disposition} Disposition] Begin due diligence of } Stockholm | Milan in Munich | France || European real estate as from Citi Capital acquisit July 2005 Phoenix — Lease by CIT for 85,000 square feet January 2005 August 2005 Begin
Slide 47: Space acquisition completed in Amsterdam
January 20} April 2005 | May 2005 J June 2005 | October 20] October 204 Dublin leas] Disposition} Disposition] Begin due diligence of | stockhoim | Milan Space acquisition in Munich | France || European real estate as: completed in from Citi Capital acquisi | Amsterdam July 2005 Phoenix — Lease by C
Slide 48: Space acquisition completed in Amsterdam
‘Space acquisition completed in Amsterdam | Disposition} Begin due diligence of | Stockholm | Milan in Munich | France | European real estate as from Citi Capital acquis | VA Phoenix — Lease by CIT for 85,000 square feet Begin sale process Sale of CIT's interest in for CIT stake Waterside Plaza for
Slide 49: 2006 / U.S. Assignments
San Diego, CA Pasadena, CA Westport, CT 2006 / U.S. Assignments Livingston, NJ
Slide 50: Slide 50