The boom in the real estate market seems to keep the headlines coming. In a transaction that could be completed as early as the end of this year, Douglas Elliman is planning to go public as it spins off from Vector Group Ltd., which owns the real estate brokerage firm, a statement from the company said this week.
“With a leading luxury brand and a comprehensive suite of technology-enabled services and investments,” Vector Group President, CEO and Chairman Howard Lorber said in a statement, “Douglas Elliman is well positioned to capitalize on opportunities in the large and growing U.S. residential real estate market. Following the spin-off, Vector Group’s separate tobacco and real estate businesses will be better positioned to execute their strategic plans to drive each company’s long-term success and unlock value for stockholders.”
Vector Group Ltd. currently owns Douglas Elliman Realty LLC as well as the real estate company New Valley LLC and tobacco company Liggett Group, among other holdings. The new public company, Douglas Elliman Inc., would be headquartered in Miami, according to reports, where Vector Groups is also based, although it is reported that Douglas Elliman Realty would remain in New York. Douglas Elliman is currently the sixth largest residential brokerage company in the U.S., and in the third quarter of this year reported a 70% increase in revenue year on year, from $208 million to $354.2 million, along with a 62% bump in closed sales volume, up 4.8 billion to $12.6 billion.
The new public company will reportedly trade under the ticker symbol “DOUG,” but not until a number of conditions are met along with a filing of Form 10 with the Securities and Exchange Commission, including approval by regulators and the Vector Group board.
The move “reflects our confidence in the exciting prospects of Douglas Elliman as an industry-leading brand name differentiated by its utilization of and investment in a portfolio of innovative technology services and a best-in-class team of employees and agents,” Douglas Elliman CEO Scott Durkin said in a statement. “As we move forward on this path to establish Douglas Elliman as a standalone public company, our experienced management team remains committed to optimizing our existing portfolio of solutions, expanding our market footprint and making strategic investments in early-stage, disruptive PropTech companies that keep us and our agents on the cutting edge of the industry.”