Coldwell Banker OKs Canadian Joint Venture

MISSION VIEJO — Coldwell Banker Corp. and a Toronto company agreed in principle Tuesday to a partnership that would make the combined operation Canada’s second-largest residential real estate company.

The tentative agreement with Canada Trust, a subsidiary of CT Financial Services Inc., would give the joint venture a greater reach throughout North America and a greater ability at wooing the coveted relocation business.

Relocations--helping workers find new homes when they move to new regions--make up 30% to 40% of residential sales during the current soft real estate economy.

The partnership, to be called Coldwell Banker Affiliates of Canada, will function as a Coldwell master franchise.

Under the tentative agreement, the Mission Viejo-based company would receive royalties as a master franchiser and would share the franchise fees.

The joint venture would also give Coldwell the financing to become a large mortgage lender in Canada. CT Financial, which would provide the funding, administers more than $150 billion in assets.

This is Coldwell’s first major move since it was sold last week to the Fremont Group by Sears Roebuck & Co.

“This is an announcement of the seriousness we bring to being an international player,” said Robert A. Rist, a Coldwell executive who will head the joint venture.

Rist said he is looking at the possibility of expanding into Mexico next.

Whether the partnership retains its No. 2 spot in Canada will depend on whether Canada Trust can sell its 113 company-owned offices over the next several months. Coldwell of Canada wants only franchise offices. Canada Trust also has 106 franchise offices; Coldwell Banker has 116 franchise offices in Canada.

All offices will eventually carry the Coldwell Banker name. Canada Trust, which traces its roots to 1855, has a well-known name, Rist said, but he said he hopes that the Coldwell Banker name will retain that recognition.