$3B 2023 Revenue: CBRE To Combine Its Project Management Business with U.K.‑Based Subsidiary

The Dallas-based real estate services giant said that once the transaction closes, it will own 70% of the combined Turner & Townsend/CBRE Project Management business, with the Turner & Townsend partners holding the remaining 30%.

CBRE Group plans to combine its Project Management business with U.K. based Turner & Townsend, its majority-owned subsidiary that provides program management, cost consultancy, and project management services globally, the Dallas-based real estate services giant announced.

The company said that once the transaction closes, CBRE will own 70% of the combined Turner & Townsend/CBRE Project Management business, with the Turner & Townsend partners holding the remaining 30%.

“Unifying our Project Management business will create an offering that is unmatched for its scale and breadth of capabilities, with more than 20,000 employees serving clients in over 60 countries,” Bob Sulentic, CBRE’s chair and chief executive officer, said in a statement. “Powerful secular trends, particularly increased spending on infrastructure, green energy, and employee experience, are growth catalysts for this business and we are well positioned to capitalize on this significant opportunity.” 

CBRE acquired a 60% ownership interest in Turner & Townsend in November 2021 and since then, Turner & Townsend has grown revenue at a compound rate of more than 20%, CBRE said.

CBRE’s entire Project Management business, including Turner & Townsend, produced net revenue of roughly $3 billion in 2023.

Since 2021, combined net revenue has grown at a double-digit annual rate with an approximately 15% net profit margin, CBRE added.

T&T CEO to lead combined business

CBRE said the combined business will be led by Vincent Clancy, Turner & Townsend’s CEO, who will continue to report to a board controlled by CBRE and composed of senior executives from both CBRE and Turner & Townsend.

“Vince is an exemplary leader who has guided Turner & Townsend to great success,” Sulentic said. “Putting CBRE’s extensive global Project Management resources and capabilities under Vince will strengthen our value proposition for clients and advance our growth ambitions.”

Spotlight on project management

Clancy said the combined business is being created with a purpose.

“Our ambition since joining forces with CBRE in 2021 has been to create the premier, differentiated program, project and cost management capability globally,” he said. “We have made exceptional progress towards this goal and our revenue and profit have grown significantly in the last three years.”

He added that he expects the growth to continue.

“Turner & Townsend’s momentum will continue to grow with the combining of two great businesses into one integrated, pure play project management capability,” Clancy said. “Our combined depth of talent and resources, global footprint, sector expertise and commitment to excellence will be second to none in project and program management.”

The CBRE board of directors intends to appoint Clancy to the CBRE Board upon closing the transaction, the companies said.

“Vince will bring a global perspective and deep experience in key growth areas like renewable energy and infrastructure to our board. We look forward to his insights and contributions,”said Sulentic.

Beginning in 2025, CBRE said it intends to report Project Management results in a new segment separate from Global Workplace Solutions in order to provide increased transparency for investors.

Turner & Townsend operates across three business segments globally:

  • Real Estate – serving investors and occupiers across all property types, including data centers and life sciences
  • Infrastructure – notably transport and aviation
  • Energy and Natural Resources – including renewable energy, alternative fuels, and liquified natural gas

CBRE said the transaction is expected to close around year’s end.

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