CBRE acquires new Johnson Controls business

CBRE acquires new Johnson Controls businessCBRE Group, Inc. announced last week an agreement to acquire the Global WorkPlace Solutions (GWS) business of Johnson Controls, Inc. in the United States for US$1.475 billion (AU$1.944 billion).GWS, which provides integrated facilities management solutions for commercial real estate occupiers globally, will operate within CBRE’s Global Corporate Services (GCS) business. Combined, the businesses will manage close to 5 billion sq ft(464,515,200 sqm) of real estate and corporate facilities globally.Once the acquisition is complete, CBRE said GWS’s engineering expertise will enhance its own expertise in leasing, delivering a full range of combined occupier services to clients of both CBRE and GWS.Over the past decade, CBRE’s GCS business has reported increased revenue at a double-digit compound annual growth rate, attributing this growth to the rise in outsourcing real estate services among major corporations and institutions. The deal also sees CBRE and Johnson Controls enter into a 10-year strategic relationship under which “CBRE will provide Johnson Controls with a full suite of integrated corporate real estate services (including facilities management, project management and transaction services) on more than million sq. ft. (4645 sqm)”.Meanwhile, Johnson Controls will provide a factory-direct relationship on HVAC equipment, building automation systems and related services to CBRE for its managed properties. Another outcome of the relationship will be a jointly funded innovation lab “that will develop leading-edge energy management solutions to lower costs and enhance their clients’ work environments”.