The company says the move will create the "premier global provider of program, project and cost management."
CBRE Group has completed the acquisition of Turner & Townsend Holdings, a deal in which CBRE purchased a 60% stake in the United Kingdom-based professional services company.
The transaction, which was announced in July, will help CBRE tap into growth opportunities in the project management sector, CBRE president and CEO Bob Sulentic said. The commercial real estate firm claims that its combination with Turner & Townsend will create the “premier global provider of program, project and cost management.”
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“This is a very exciting step that advances CBRE’s diversification strategy across four dimensions – asset types, lines of business, clients, and geographies,” Sulentic said. “Public and private sector infrastructure investment and the drive to a low-carbon economy are fueling secular growth opportunities in project management.
“Turner & Townsend is by far the best firm to help us realize our ambitions for this business. Their first-rate brand and capabilities – when combined with our own – will enable both firms to best serve clients and capture the sizeable opportunities in the marketplace.”
The professional services company provides program and project management, cost consultancy, and advisory consulting services for clients in 46 countries. It operates across three business sectors: real estate (data centers and life-science properties), infrastructure (transportation, environmental, and power generation projects), and natural resources (renewable energy, alternative fuels, liquified natural gas, and other projects).
As previously announced, CBRE has acquired a 60% ownership interest for approximately £960 million ($1.3 billion) in cash, with 55% paid upon closing. Turner & Townsend will retain its existing leadership team, heritage, operational independence, and partnership structure – which will hold the remaining 40% ownership interest. The deal values Turner & Townsend at approximately £1.6 billion ($2.2 billion) and is expected to be immediately accretive to CBRE’s earnings.
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“As asset classes evolve and the world transitions to net zero, clients require even greater sector specialization and industry insight to drive value and unlock opportunities. CBRE and Turner & Townsend will meet this need by aligning our skillsets, providing access to a global talent pool of more than 16,000 program, project, and cost managers, as well as the industry’s largest repository of project performance data. The combination of our talented team, operational independence, global footprint, and commitment to investment will deliver significant benefits for clients while providing a great place for our people to advance their careers,” said Vincent Clancy, chairman, and chief executive officer of Turner & Townsend.
Clancy and the existing management team will remain at the helm of Turner & Townsend, which will continue to operate under its existing brand.
