SINGAPORE (EDGEPROP) - US-headquartered CBRE Group will acquire a 60% ownership interest in UK-based Turner & Townsend Holdings for about GBP960 million ($1.81 billion) in cash, with 55% of the amount to be paid upon closing. (See also: CBRE’s Moray Armstrong sees ‘a raft of opportunities’ post-Covid-19)

The acquisition agreement also paves the way for a strategic partnership between the two companies.

Turner & Townsend is a cost consultancy that also provides programme management, project management and advisory consulting services.

The 60% stake acquisition by CBRE Group preserves the existing leadership team at Turner & Townsend, as well as the company’s heritage, operational independence and partnership structure. The remaining 40% stake will remain with Turner & Townsend.

“This is a transformational transaction for our project management business in terms of both breadth and scale of capabilities. We see sizeable secular growth opportunities in project management, which are being propelled by rising public and private infrastructure investment and the drive to a low-carbon global economy,” says Bob Sulentic, CBRE president and CEO. “Turner & Townsend is by far the best firm to help us realise our ambitions for this business.”

He adds that the partnership between the two companies will provide Turner & Townsend with the opportunity to materially expand its business in the Americas, where CBRE has deep occupier and investor relationships and a leading market presence.

Turner & Townsend operates three business segments, with real estate contributing about 62% of its net revenue. The other segments are infrastructure and natural resources. For the 12 months ended April 30, 2021, Turner & Townsend’s net revenue was about GBP665 million.