Property firm Gunne Commercial has merged with Insignia Richard Ellis, a multinational property consultancy with 58 offices worldwide, to form a new all-Ireland property company.
A letter of intent has been signed between the two and the new entity will be rebranded Insignia Richard Ellis Gunne within six to eight weeks.
Under the agreement Insignia Richard Ellis will acquire a significant minority equity stake in the Dublin firm and will maintain representation on the board.
Insignia Richard Ellis already holds an equity stake in Gunne Commercial through its 50/50 joint venture in Belfast, Insignia Richard Ellis Gunne.
Mr Ted Webster, a director of Insignia Financial Group, will continue to be a board director of the company.
He was co-founder of Richard Ellis Gunne along with the late Mr Fintan Gunne.
Mr Pat Gunne, managing director of Gunne Commercial, said the property market would soon be dominated by four or five multinational companies. The merger would provide a strong platform for Gunne Commercial to expand into the European and US markets, he added.
Mr Ted Webster said the Republic was a particular target for the Insignia group due to the economy's buoyancy. He said the group was focused on commercial property and was not interested in the residential sector.
The merger with Gunne Commercial was an extension of the group's expansion programme throughout Europe, said Mr Webster.
Insignia has a turnover of $650 million (€674 million) and employs some 3,200 in 58 offices worldwide. Mr Webster said further European expansion would soon be announced in France and Spain.
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