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In his recent letter to shareholders, billionaire investor Warren Buffett tells us that he now owns around 67% of an operation that runs Prudential, the Irvine-based real estate chain.

Buffett said that he will “purchase the balance of those operations within five years.”

Until the shareholder letter, there has never been a time where any of the details of the partnership between Brookfield Asset Management and Berkshire Hathaway have been revealed.

Back in October of 2012, Brookfield and Warren Buffett told the world that they were going to team up and create a new national real estate chain known as Berkshire Hathaway HomeServices. The headquarters of this company is in Irvine, California.

According to the shareholder letter released by Warren Buffett on March 1 of 2013, the existing real estate company of Berkshire Hathaway known as HomeServices of America, actually purchased the 67% of the Prudential and Real Living franchise operations. Together, both of these companies license 544 brokerage companies on a national scale.

The new chain known as Berkshire Hathaway HomeServices is soon-to-be operational later on in 2013. The Prudential franchises are going to convert to the new brand as well. The other Prudential offices are going to have the opportunity to switch brands or continue to operate under the Prudential name, as well as the Rock of Gibraltar logo.

The new chain actually unveiled its new logos and colors during the past week at Prudential Real Estate’s Las Vegas sales convention.

The official colors are Cabernet and cream the company tells us. They will also have a very simple font and design for their new business cards, yard signs and logos.

Officials from the company say that the new look has a timeless quality, reflecting “the brand’s classic heritage.”

“The new Berkshire Hathaway HomeServices logo exemplifies strength and elegance,” said chairman and CEO of HomeServices of America Ron Peltier.

“The Berkshire Hathaway HomeServices brand identity is smart, distinctive and versatile for all markets and price ranges,” said Earl Lee, CEO of HSF Affiliates LLC.

As I’m sure you’ve realized, Berkshire Hathaway is in the process of picking up a real estate franchise from Real Living and Prudential. They also intend to launch an entirely new brokerage brand with those real estate agents.

On October 30, we learned that Berkshire Hathaway intends to acquire Prudential’s real estate agent network. They are obtaining it from Brookfield Asset Management.

During 2013, Berkshire Hathaway and Brookfield intend to create Berkshire Hathaway HomeServices. Once created, they will begin transferring the real estate agents over to this newly established firm.

Warren Buffett is excited to lend the Berkshire Hathaway name, plus their incredible financial strength, to the soon to be formed company. They are going to base it out of Irvine, California. A team of Prudential Real Estate executives will lead it.

“I am confident that these partners will deliver value to the residential real estate industry, and I am pleased to have Berkshire Hathaway be a part of the new brand,” said Warren Buffett in a recent statement.

The financial terms of this transaction were not disclosed, but the majority owner of this business is going to be the HomeServices of America unit that’s part of the Berkshire Hathaway conglomerate. As of today, the company has 16,000 real estate agents spread across 21 states. This will certainly help expand on the ever-growing number.

Ron Peltier, chairman and CEO of HomeServices, said the new deal will expand their national franchise network by adding an additional 75,000 agents. He also believes that this addition will complement the already existing local brokerages.

During an interview, Peltier tells us that it was more convenient to acquire a national franchise. In order to build one on his own, it would have taken many years and it would also be very expensive. They intend to completely eliminate the Prudential and Real Living brands over the next few years.

“The strategy going forward is to migrate the franchises over to one super brand: Berkshire Hathaway HomeServices,” said Peltier. This will give them the opportunity to create one main brand, which is beneficial to its online presence, and they prefer to do it under the Berkshire Hathaway HomeServices banner.

Peltier tells us that the existing brokers under the HomeServices banner are not going to be forced to switch affiliations to the new network. But they are going to be required to mention that Berkshire Hathaway owns them. As an example, Omaha-based CBS Home Real Estate can certainly keep its name. But all of their branded products have to also represent that they are an affiliate of Berkshire Hathaway.

Peltier tells us that it’s important to mention Berkshire Hathaway because he wants all of these companies to be able to show up correctly when potential customers look for them through Internet searches. This is a smart strategy and it makes perfect sense.