8-K

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                             ______________________


                                    FORM 8-K

                                 CURRENT REPORT


                     PURSUANT TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934


       DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): DECEMBER 22, 1994



                          KOLL REAL ESTATE GROUP, INC.
               --------------------------------------------------
               (Exact name of registrant as specified in charter)



         DELAWARE                        0-17189               02-0426634
 ----------------------------          -----------         -------------------
 (State or other jurisdiction          (Commission           (IRS Employer
  of incorporation)                    File Number)        Identification No.)


           4343 VON KARMAN AVENUE, NEWPORT BEACH, CALIFORNIA     92660
           --------------------------------------------------------------
               (Address of principal executive offices)        (Zip Code)



                                 (714) 833-3030
               ---------------------------------------------------
               (Registrant's telephone number including area code)



          -------------------------------------------------------------
          (Former name or former address, if changed since last report)



Item 5.   OTHER EVENTS.

          The Registrant successfully completed the financing transactions
described in the Registrant's press release dated December 30, 1994 a copy of
which is included as Exhibit 20 to this Current Report on Form 8-K and is
incorporated herein by this reference. These transactions relate to (i) the
financing of an appeal bond and any related judgement or settlement in
connection with the previously announced December 22, 1994 Delaware Chancery
Court decision issued against the Registrant involving certain tax sharing
agreements; and (ii) construction loans for the continued development of the
Registrant's Eagle Crest residential project in Escondido California and its
Wentworth By The Sea project on the coastline of New Hampshire.

Item 7.   FINANCIAL STATEMENTS AND EXHIBITS.

          (c)  Exhibits:

               Exhibit No.                   Title
               -----------                   -----

                   20              Press Release of the Registrant dated
                                   December 30, 1994.












                                    SIGNATURE


          Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.



                                             KOLL REAL ESTATE GROUP, INC.



Date:  December 30, 1994                    By /s/Raymond J. Pacini
                                                ----------------------------
                                                Raymond J. Pacini
                                                Executive Vice President and
                                                Chief Financial Officer


                                        2

EX-20

                                   EXHIBIT 20


                                                                     Page 1 of 2

NEWS RELEASE                                                   December 30, 1994

Contact:     Raymond J. Pacini
             Chief Financial Officer
             714-833-3030 x291

                   KREG COMPLETES $36.5 MILLION IN FINANCINGS

     NEWPORT BEACH, Calif. -- Koll Real Estate Group, Inc. (NASDAQ: KREG)
announced that it recently completed two previously announced financings with
major financial institutions which will provide KREG with an aggregate of up to
$36.5 million over the next two years.  Both credit facilities mature in
December 1996, with optional extensions to December 1997, subject to certain
conditions.

     Management explained that one of the financings provides up to $25 million
for the posting of an appeal bond, or payment of any final judgment or
settlement in excess of $7.5 million which would be funded by KREG, related to
the $20.8 million decision, plus prejudgment interest and attorney's fees,
issued against KREG on December 22, 1994 by the Delaware Chancery Court in
connection with a previously announced lawsuit filed by Wheelabrator
Technologies Inc. and Abex Inc. involving amounts claimed to be owed under
various tax sharing agreements.  This credit facility also provides a $5 million
construction loan for the Company's Eagle Crest residential project in
Escondido, California. The construction loan component provides KREG the ability
to reborrow $5 million after repayment, subject to certain restrictions. The
Eagle Crest project is approved for 580 homes surrounding an 18-hole
championship golf course which opened in May 1993. KREG plans to utilize the $5
million construction loan, along with available cash, to fund completion of
infrastructure construction at Eagle Crest in anticipation of selling
residential lots to

                                    **MORE**



                                                                     Page 2 of 2
homebuilders in 1995.

     The second credit facility provides KREG with up to a $6.5 million
construction loan for its Wentworth By The Sea project on the coastline of New
Hampshire. The Wentworth project is approved for 150 homes adjacent to a 170-
slip marina and a nearby 18-hole golf course which the Company sold in September
1994. KREG plans to utilize this construction loan to fund completion of
infrastructure improvements and construction of homes.  This credit facility
includes a $3.0 million revolver for the construction of homes at Wentworth By
The Sea.

     KREG provides commercial and residential real estate development services
nationwide. It holds a large residential land inventory in Southern California
and on the New Hampshire coastline, including the Bolsa Chica property located
on the Pacific Coast adjacent to Huntington Beach, California, which recently
received County approval, and owns Kathryn G. Thompson Company, a prominent
Southern California homebuilder.

                                   *** END***