Columbia Threadneedle Investments, the asset management unit of Ameriprise Financial Inc. (NYSE:) has agreed to acquire Houston-based real estate investment firm Lionstone Partners, Ltd. Terms of the deal, which is expected to be completed by the end of 2017, have not yet been disclosed.
The deal is likely to benefit both Columbia Threadneedle as well as Lionstone.
Real estate as an alternative asset class is projected to receive greater importance from institutional investors and high net worth individuals in the future. Hence, Columbia Threadneedle will benefit from the transaction as it will allow the firm to extend its capabilities and offerings across this growing asset class.
Columbia Threadneedle’s CEO, Ted Truscott said, “We believe our broad institutional capabilities and relationships, together with our investment research insights, make this an excellent fit.”
On the other hand, Lionstone will benefit from the financial strength of Ameriprise Financial. Additionally, it will gain access to Columbia Threadneedle’s client service and broader asset gathering.
Jane Page, CEO of Lionstone said, “Columbia Threadneedle’s leadership, experience, and culture are complementary to Lionstone’s, making this a strong strategic partnership.”
The firms’ chief strategy officer, Glenn Lowenstein, said, “As one of the earliest adopters to apply proprietary advanced analytics to real estate, our investment process is a significant competitive advantage that has allowed us to consistently deliver attractive returns with lower risk to our investors,” adding, “We are excited about this opportunity to take our analytics-driven approach to the next level.”
Notably, even after the acquisition is complete, Lionstone will remain based in Houston and will retain its brand name. Moreover, though Page will now report to Truscott, there won’t be any changes in Lionstone’s executive team.
Shares of Ameriprise have gained 27.6% so far this year, outperforming the 20.3% growth for the industry it belongs to.
Currently, Ameriprise carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks from the finance space are mentioned below.
The Toronto-Dominion Bank (TO:) has witnessed an upward earnings estimate revision of 13.2% for the current fiscal year over the past 60 days. Its share price has increased 24.6% in the past year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
M&T Bank Corporation (NYSE:) witnessed a marginal upward earnings estimate revision for the current year over the past 60 days. Its share price has increased 32.6% in a year’s time. It carries a Zacks Rank #2.
The PNC Financial Services Group, Inc. (NYSE:) also carries a Zacks Rank #2. Its Zacks Consensus Estimate for the current year has been revised marginally upward in the last 60 days. Its shares have gained 47.8% in the past 12 months.
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