Berkshire Unit Grows in Germany -- WSJ

By Nicole Friedman 

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (March 6, 2018).

Berkshire Hathaway Inc.'s real-estate brokerage network is adding its first international franchisee, in Berlin, broadening the conglomerate's ties to Germany.

Berkshire Hathaway HomeServices is set to announce the addition of Berlin-based Rubina Real Estate GmbH to its franchise network on Monday, and Rubina will change its name to Berkshire Hathaway HomeServices Rubina Real Estate next month.

Berkshire, a conglomerate run by billionaire Warren Buffett, has made two acquisitions in Germany in recent years and is on the hunt for more. It also bought a stake in German chemical company Lanxess AG last year.

"It is a market that Berkshire Hathaway is very tuned into, so we believe that the brand will resonate there and be well received," said Peter Turtzo, senior vice president of international operations for BHHS, in an interview.

BHHS plans to continue its international expansion and is looking to Europe, Asia and Latin America, executives said. The network has 1,400 offices with more than 45,000 agents.

Berkshire's real-estate business, which includes owned and franchised brokerages, earned $220 million last year, down from $225 million the prior year, according to the company's annual report.

Real-estate brokerages have helped make Berkshire's name more familiar to consumers. Many Berkshire companies have their own brands, including Geico, Dairy Queen and Fruit of the Loom. But Berkshire has expanded the use of its name in recent years. Its utility business changed its name from MidAmerican Energy Holdings Co. to Berkshire Hathaway Energy in 2014. After Berkshire bought the Van Tuyl Group of auto dealerships in 2015, it was renamed Berkshire Hathaway Automotive.

BHHS is a subsidiary of HomeServices of America, which is owned by Berkshire Hathaway Energy.

Mr. Buffett praised his real-estate business in his past two annual letters to shareholders.

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(END) Dow Jones Newswires

March 06, 2018 02:47 ET (07:47 GMT)

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