Corporate real estate consultancy firm Turner & Townsend is to become majority owned by CBRE as part of a strategic partnership between the two businesses which values the former at £1.6 billion.
The deal will see Turner & Townsend’s operational independence and existing leadership team remain as it currently is; CBRE will own 60 per cent of the company while Turner & Townsend retaining the remaining 40 per cent.
Services will continue to be delivered under the Turner & Townsend brand with financial results consolidated and reported as part of CBRE’s Global Workplace Solutions (GWS) business.
CBRE says that a key benefit of the arrangement is the opportunity it allows for Turner & Townsend to expand its business in the Americas, where CBRE has “deep occupier and investor relationships and a leading market presence”.
Vincent Clancy, chairman and chief executive officer of Turner & Townsend, said: “The combined partnership of CBRE and Turner & Townsend will create the premier global provider of program, project and cost management from day one.
“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 deal has been heralded as a “transformational transaction” for CBRE’s project management business by Bob Sulentic, CBRE’s president and chief executive officer. It is subject to regulatory approvals and is expected to be closed in Q4 2021.