CBRE To Acquire Majority Interest in and Form Strategic Partnership With Turner & Townsend | Business

By Editor On Jul 27, 2021

DALLAS – (BUSINESS WIRE) – Sept. July 2021–

CBRE Group, Inc. (NYSE: CBRE) and Turner & Townsend Holdings Limited today announced a definitive agreement whereby CBRE will acquire a 60% stake in Turner & Townsend, a global leader based in the UK, and form a strategic partnership with received by him & in program, project and cost management.

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CBRE will acquire 60% of the shares for approximately £ 960 million ($ 1.3 billion) in cash, with 55% payable on closing. The transaction preserves the existing leadership team, legacy, operational independence and partnership structure of Turner & Townsend, which will hold the remaining 40% of the shares. The transaction valued Turner & Townsend at approximately £ 1.6 billion (US $ 2.2 billion) and is expected to have an immediate positive impact on CBRE’s revenues.

Turner & Townsend provides program management, cost consulting, project management and advisory services to clients in 46 countries. It operates in three lines of business: Real Estate (62% of net sales) – serves investors and users of all types of real estate, including data centers and life science properties; Infrastructure (31% of net sales) – particularly transportation, environmental and power generation projects, and natural resources (7% of net sales) – renewable energy, alternative fuels, liquefied natural gas and other projects.

For the 12 months ended April 30, 2021, Turner & Townsend net sales were approximately £ 665 million ($ 923 million) and Adjusted EBITDA was approximately £ 124 million ($ 172 million).

“This is a game-changing transaction for our project management business in terms of size and scope,” said Bob Sulentic, President and Chief Executive Officer of CBRE. “We see significant long-term growth opportunities in project management, fueled by increasing public and private infrastructure investments and the pursuit of a low-carbon global economy. Turner & Townsend is by far the best company to help us realize our ambitions in this business. It’s an exceptionally well-run company with a world-class brand, an enviable customer base, and know-how that complements our capabilities. “

One of the key benefits of the strategic partnership for Turner & Townsend is the opportunity to grow its business significantly in North and South America, where CBRE has deep customer and investor relationships and a leading market presence.

Vincent Clancy, Chairman and Chief Executive Officer of Turner & Townsend, said, “The joint partnership between CBRE and Turner & Townsend will create the premier global provider of program, project and expense management from day one. Turner & Townsend will continue to provide independent program-level advice, solutions and thinking in the real estate, infrastructure and natural resources sectors. Thanks to our global network, this applies all over the world – we operate where our customers are. The combination of unmatched global presence, industry expertise, commitment to investment and an incredible team of people will make CBRE and Turner & Townsend the preferred companies in our industry. “

Upon completion of the transaction, Mr. Clancy and the existing Turner & Townsend management team will continue to run the company on a daily basis and all of its services will continue to be provided under the Turner & Townsend brand. Turner & Townsend’s financial results are consolidated and reported in the Global Workplace Solutions (GWS) division of CBRE.

Turner & Townsend will be led by a new Board of Directors comprised of three CBRE executives – Mr. Sulentic, Jack Durburg, Global CEO, GWS, and Chandra Dhandapani, Chief Transformation Officer and COO, GWS, and three Turner & Townsend- Executives – Mr. Clancy, Jeremy Lathom-Sharp, Finance Director, and James Dand, Chief Operating Officer.

The transaction is subject to regulatory approvals and other customary closing conditions. The closing is expected in the fourth quarter of this year.

Morgan Stanley & Co. LLC is serving as financial advisor and Simpson Thacher & Bartlett LLP and Dentons are serving as legal advisor to CBRE. Rothschild & Co is serving as financial advisor and Pinsent Masons LLP is serving as legal advisor to Turner & Townsend.

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment company (based on 2020 revenue). The company employs more than 100,000 people who serve customers in more than 100 countries. CBRE serves a wide range of clients with an integrated suite of services including facilities, transaction and project management; Property Management; Investment management; Appraisal and valuation; Real estate leasing; strategic advice; Sale of real estate; Mortgage services and development services. Please visit our website at www.cbre.com. We regularly post important information on our website, including company and investor presentations and financial information. We intend to use our website as a means of disclosing material, nonpublic information, and to meet our disclosure obligations under Regulation FD. Such disclosures will be made in the Investor Relations section of our website at https://ir.cbre.com. Accordingly, investors should monitor this portion of our website in addition to our press releases, filings with the Securities and Exchange Commission, and public conference calls and webcasts.

About Turner & Townsend

Founded in 1946, Turner & Townsend is an independent professional services company based in the UK specializing in program management, project management, cost and trade management and advisory services in the real estate, infrastructure and natural resources sectors. It employs more than 7,000 people in 112 offices and serves customers in 46 countries.

Forward-Looking Statements

Certain statements in this press release relating to the proposed acquisition of 60% of the shares in Turner & Townsend that are not purely historical are forward-looking statements within the meaning of the “safe harbor” provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on our management’s expectations and beliefs about future events that affect us and are subject to uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control. Accordingly, actual performance, results and events could differ materially from those contained in any forward-looking statements and you should not rely on any forward-looking statements as predictions of future performance, results or events. Numerous factors could cause actual future performance, results and events to differ materially from those expressed in forward-looking statements, including, but not limited to, the continued growth of the commercial real estate, infrastructure and natural resource markets worldwide and the ability of CBRE and Turner & Townsend work both cooperatively and independently to capitalize on opportunities in these markets and other risks and uncertainties discussed in our SEC filings. All forward-looking statements speak only as of the date of this publication. We undertake no obligation to update forward-looking statements to reflect actual results, changes in assumptions, or changes in other factors that affect forward-looking information, except as required by applicable securities laws. If we update one or more forward-looking statements, it should not be inferred that we are additionally updating these or any other forward-looking statements. For more information about factors that could cause actual results to differ from those anticipated in any forward-looking statements, as well as other risks and uncertainties to our business in general, please refer to our SEC filings, including our Form 10-K for the expired Fiscal year December 31, 2020 and Form 10-Q for the quarter ended March 31, 2021. Such submissions are publicly available and can be requested on our website at www.cbre.com or upon request from CBRE’s Investor Relations department at investorrelations @ cbre. com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210727005548/en/

CONTACT: Kristyn Farahmand

CBRE investors

214.863.3145 Steve Iaco

CBRE media

212.984.6535 Paul Howlett

Turner & Townsend Media

+44 (0) 7852 434000

KEYWORD: UNITED STATES NORTH AMERICA TEXAS

SECTOR KEYWORD: COMMERCIAL & REAL ESTATE & REAL ESTATE RIDING

SOURCE: CBRE Group, Inc.

PUB: 07/27/2021 07:30 am / DISC: 07/27/2021 07:32 am

http://www.businesswire.com/news/home/20210727005548/en

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