CRE firm sets sights on expanding its alternative energy businesses
CBRE Group has revealed its latest acquisition – Turner & Townsend Holdings, one of the world’s largest managers of infrastructure, natural resources, and real-estate construction projects.
UK-based Turner & Townsend will sell 60% ownership interest to the commercial real estate services firm in a deal priced at £960 million ($1.3 billion). The transaction followed CBRE’s merger with Blackstone-backed solar power company Altus Power as it plans to expand in alternative energy and infrastructure. CBRE said that the owners and tenants of the buildings under its management have given higher priority to reducing their carbon footprints and meeting their sustainability goals.
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“We see sizable secular growth opportunities in project management, which are being propelled by rising public and private infrastructure investment and the drive to a low-carbon global economy,” said Bob Sulentic, president and chief executive officer of CBRE. “Turner & Townsend is by far the best firm to help us realize our ambitions for this business. It is an exceptionally well-run company with a first-rate brand, enviable client base and expertise that complements our capabilities.”
Turner & Townsend operates in 46 countries and provides program management, cost consultancy, project management and advisory consulting services. The deal values the company at roughly £1.6 billion ($2.2 billion) and is expected to be immediately accretive to CBRE’s earnings.
CBRE will pay 55% of the deal in cash upon closing, which is expected to take place in the fourth quarter of this year.
“The combined partnership of CBRE and Turner & Townsend will create the premier global provider of program, project and cost management from day one,” Clancy said. “Turner & Townsend will continue to offer independent advice, solutions and program level thinking across the real estate, infrastructure and natural resources sectors. Our global network means this applies everywhere in the world – we operate where our clients operate. The combination of unrivalled global footprint, sector expertise, commitment to investment and an incredible team of people will make CBRE and Turner & Townsend the go-to firms in our industry.”
