Insider Media Limited

The £197m merger of property giants Jones Lang LaSalle and King Sturge will create a "powerful force" in Birmingham, bosses from both companies have told Insider. Jan Thompson and Ian Cornock said the company was looking to integrate both Birmingham-based teams, and said although some job roles would have to be reviewed, there would be "limited damage".

Under the terms of the global merger, which was announced late last week, Jones Lang LaSalle will pay £197m to the partners of King Sturge, with £98m in cash at closing and the balance paid out in cash over five years.

All 43 King Sturge offices and businesses across Europe, including 24 in the UK, will become part of Jones Lang LaSalle and will operate under the Jones Lang LaSalle brand.

Integration of business lines and teams and the full rebranding of all business activities will begin immediately, said the companies.

Ian Cornock, partner in King Sturge's Birmingham office, spoke to Insider alongside Jan Thompson, head of Jones Lang LaSalle's office in the city.

Thompson said: "The merger will create a very powerful force in Birmingham – we will have a combined workforce of more than 120 – and there is very little overlap in terms of clientele."

He said the idea of consolidation between property firms had been talked about "for some time" within the sector.

"People were talking about it in the 80s; they looked at the way accountancy firms were merging and accessing a much wider, global client base and saw the benefits of a wider service. I think it has just taken longer for the idea to transfer into the property market."

Cornock added: "The property world is moving; it is becoming a more global marketplace. Nowadays, companies need to have the breadth and global reach that clients demand.

"We're very much looking forward to integrating the two Birmingham offices. Obviously, some job roles will have to be reviewed, but there will be limited damage on both sides. We'll consolidate and bring both teams together under one roof wherever space in the city allows."

The merged business operates in 70 EMEA markets across 30 countries employing 5,300 people providing integrated real estate services worldwide to investor, owner and occupier clients. The UK business will have 2,700 employees across 34 offices.