Industry News

Cendant buys Sotheby’s real estate brokerage

Will license Sotheby's International Realty brand name under possible 100-year term

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Cendant Corp. today announced it has acquired the residential real estate brokerage operations of Sotheby's International Realty and entered into an agreement with Sotheby's for a 100-year term. The term consists of an initial 50-year term and a 50-year renewal option, whereby Cendant will license the Sotheby's International Realty brand in exchange for a licensing fee to Sotheby's. The total cash purchase price for the company-owned real estate brokerage operations, as well as the license agreement, was approximately $100 million, plus an ongoing license fee based on future royalties from the development of the Sotheby's International Realty franchise system and company-owned operations. Sotheby's International Realty will operate under two business units. The company-owned residential real estate brokerage operations will be owned and operated by NRT Inc. Stuart Siegel, former president and CEO of Sotheby's International Realty, now becomes senior vice president for NRT with re...