ROOF Blog

Deloitte, Britain’s second-biggest professional services group, is to seize a foothold in the £2 billion commercial property consulting market by acquiring one of Britain’s oldest real estate firms. The ‘big four’ accountant will merge its real estate practice with Drivers Jonas, the UK’s eighth-biggest commercial property adviser. The new unit will have revenue of £110 million and 700 staff, but John Connolly, Deloitte’s chief executive, who forged the deal, said that fee income is expected to more than double to £250 million within three years. Mr Connolly said that Deloitte identified Drivers Jonas as the most attractive target in the commercial property market because of its size, profitability and reputation.

Construction activity fell in December for the 22nd month in a row as a surge in housing was offset by a sharp decline in commercial building. The construction purchasing managers’ index, where any level below 50 signals a drop in business activity, rose slightly to 47.1 from 47 last month. ‘December was another disappointing month for the UK construction sector. Unlike other parts of the economy, it seems unable to escape the shackles of the recession,’ said David Noble, chief executive of the Chartered Institute for Purchasing and Supply. ‘Purchasing managers painted a bleak picture as firms suffered from reduced client demand and falls in new business.’