CBRE Group Inc (CBG): ValueAct Capital Agrees To Sell Over 6 Million Shares

In a newly amended filing with the Securities and Exchange Commission, Valueact Capital, led by Jeffrey Ubben, disclosed that it entered into a stock sale agreement under which Morgan Stanley & Co. Inc. will sell, on the account of the hedge fund, up to 6.17 million shares of the common stock of CBRE Group Inc (NYSE:CBG). According to the filing, ValueAct Capital holds 32.17 million shares of the company, the stake is equal to 9.7% of the class.

Los Angeles-based CBRE Group Inc (NYSE:CBG) is a commercial real estate services company, which has a market cap of $10.3 billion. ValueAct Capital states in the filing that the sale of the company’s shares under the agreement can commence as early as September 4, 2014, and will terminate no later than March 4, 2015, on the New York Stock Exchange.

ValueAct Capital notes that the number of the company’s common stock shares sold each day by Morgan Stanley during the plan period will be initially based upon the reported price of the opening reported market transaction in the common stock, and may be increased or decreased in connection with a corresponding decrease or increase in the market price of such stock.

Moreover, ValueAct Capital state that it is selling these shares as part of its standard ongoing process of portfolio management. The fund remains strongly supportive of management, remains committed to its position on the board of directors and has no current intention of further significantly reducing its position in the CBRE Group Inc’s (NYSE:CBG) securities.

In the Unites States, real estate market is back on track as is evident from the recent increase in prices and rentals, and CBRE Group Inc (NYSE:CBG) has been one of the big beneficiary of the growth in the real estate sector over past few quarters. The company’s stock is up more than 44% in last one year. In a recent interview on CNBC, Bob Sulentic, president and CEO of CBRE Group Inc (NYSE:CBG), discussed the recent developments happening in real estate markets and the lucrative areas for real estate investments.

In its latest 13F, ValueAct Capital disclosed 16 investments, which have a current market value of $13.5 billion. The top pick is Microsoft Corporation (NASDAQ:MSFT), in which the investor has acquired additional 2.9 million shares, taking its stake to 74.2 million shares which have a market value of $3 billion, as of the end of the second quarter.

Disclosure: none