CBRE Group, Inc. (NYSE:CBRE) today announced that the company plans  to combine its Project Management business with Turner & Townsend, its majority-owned subsidiary that  provides program management, cost consultancy and project management services globally.  

Upon closing the transaction, CBRE will own 70% of the combined Turner & Townsend/CBRE Project  Management business, with the Turner & Townsend partners holding the remaining 30%. CBRE acquired  a 60% ownership interest in Turner & Townsend in November 2021. Since then, Turner & Townsend has  grown revenue at a compound rate of more than 20%.  

CBRE’s entire Project Management business, including Turner & Townsend, produced net revenue of  approximately $3 billion in 2023(1). Since 2021, combined net revenue has grown at a double-digit annual  rate with an approximately 15% net profit margin(2). The net synergies derived from bringing the two  businesses together are expected to generate approximately $0.15 of incremental run-rate core EPS(3) by the  end of 2027, an amount that is expected to grow over time. The cost of the incremental investment in Turner  & Townsend/CBRE Project Management is approximately $70 million, exclusive of deal costs. 

Bob Sulentic, CBRE’s chair and chief executive officer, said: “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. 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.”  

The combined business will be led by Vincent Clancy, Turner & Townsend’s chief executive officer, who will continue to report to a Board controlled by CBRE and comprised of senior executives from both CBRE and Turner & Townsend. 

“Vince is an exemplary leader who has guided Turner & Townsend to great success,” Mr. 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.”  

Mr. Clancy said: “Our ambition since joining forces with CBRE in 2021 has been to create the premier,  differentiated program, project and cost management capability globally. We have made exceptional  progress towards this goal and our revenue and profit have grown significantly in the last three years. Turner  & Townsend’s momentum will continue to grow with the combining of two great businesses into one  integrated, pure play project management capability. 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 Mr. Clancy to the CBRE Board upon closing the transaction. “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,” Mr. Sulentic said. 

Beginning in 2025, CBRE 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; and Energy and Natural Resources – including renewable energy, alternative fuels  and liquified natural gas.  

The transaction is expected to close around year-end, subject to satisfaction of regulatory and other  customary conditions and completion of required consultations with employee Works Councils in certain  jurisdictions. 

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