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Monday, September 11, 2006

CBRE Realty Finance Set IPO Terms

Looking for backdoor plays is often fun, yet lately has been of little reward. On Friday a filing from CBRE Realty Finance showed that a the company plans to offer some 12.5 Million shares at $15.00 to $17.00 range under the ticker "CBF." CBRE Realty Finance is a specialty finance company in commercial real estate that is managed by a unit of CB Richard Elis (CBG).

This will set up a proposed equity sale in the vicinity of $200 million, and that compares to a market cap of $5.1+ Billion for CBG itself. Unfortunately this only translates to a hidden 4% to 8% kicker depending on calculations from total hidden values to actual securities sold, so it is unlikely that this equity sale will generate a sudden flurry of interest in CBG just because of this.

The listed underwriters in the offering were Credit Suisse, Deutsche Bank, Citigroup, Wachovia, and JMP Securities. This is also potentially falling into an "It's about time...." category of IPO's because the original IPO filing was back in early March.

CB Richard Ellis (CBG) traded down $0.21 on Friday to $23.49, and the stock is now trading at $22.99 this morning. The 52-week trading range is $14.03 to $29.83, and the stock has been out of what was a significant uptrend for over 3 months.

This certainly won't be deemed bad news for the company, but for now no one seems to give it much care or attention.

Jon C. Ogg
September 11, 2006

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