Balfour Beatty, the U.K.-based construction company, continued its strategy of selling off non-core assets with its recent sale of Atlanta-based design services and project management firm Heery International to a subsidiary of the real estate and consulting giant CBRE Group.
The October 30 acquisition, for which CBRE agreed to pay an estimated $57 million (42 million British pounds) in cash, was completed today.
Heery was founded in 1952. Balfour Beatty bought a 50% stake in Heery in 1986, and increased its holding to 100% four years later. However, that ownership sometimes precluded Balfour from acting as a project manager and bidding as a GC simultaneously on certain projects in the U.S. Heery’s sale to CBRE removes any conflict of interest from Balfour’s U.S. Buildings operations, and allows it to partner with Heery on future projects.
In 2016, the latest year for which results are available, Heery International had gross assets valued at the equivalent of $106.1 million, and generated pretax profit the equivalent of $3.2 million. It currently operates from 19 U.S. offices with 535 employees. Its services include project management, architecture, engineering, interior design, and commissioning.
CBRE maintains the largest network of professional commercial real estate project managers worldwide. Its more than 5,000 specialists, including 350-plus LEED-certified professionals, oversaw projects with a total contract value of more than $42 billion worldwide in 2016.
In a joint venture with H.J. Russell, Heery provided construction management services for Phase I of the Atlanta-Fulton Public Library System's capital improvement program, which entailed eight new libraries (155,000 sf) and two expanded libraries (81,000 sf). Image: Heery International
Mike Lafitte, CBRE’s Global Group President-Lines of Business, states that this acquisition should advance his company’s strategy to expand its project management expertise. “Heery has a strong track record of client service with many longstanding relationships spanning decades,“ he says. Lafitte points specifically to Heery’s relationships in the public and educational sectors. This acquisition will also extend CBRE’s reach into such vertical segments as aviation and sports, and add capabilities and expertise in design engineering services.
Ted Sak and Glenn Jardine, Heery’s President/CEO and Executive VP/COO, respectively, will continue to lead Heery under CBRE’s umbrella.
Related Stories
| Oct 1, 2014
Philip Johnson's iconic Crystal Cathedral to be modernized, made 'intrinsically Catholic'
Johnson Fain and Rios Clementi Hale Studios have been commissioned by the Roman Catholic Diocese of Orange to upgrade the all-glass church in Garden Grove, Calif. The church acquired the property in 2012.
| Oct 1, 2014
4 trends shaping the future of data centers
As a designer of mission critical facilities, I’ve learned that it’s really difficult to build data centers to keep pace with technology, yet that’s a reality we face along with our clients, writes Gensler's Jackson Metcalf.
| Oct 1, 2014
EYP, WHR Architects merge, strengthening presence in education, healthcare, energy sectors
The merger unites 530 professionals to better address some of the most critical issues facing our nation, namely education, healthcare, and energy.
| Sep 30, 2014
The Big Room concept: Using Building Team collocation to ensure project success
Implementing collocation via the Big Room concept will remove silos, ensure a cadence for daily communication, promote collaboration, and elevate your chances for success, write CBRE Healthcare's Stephen Powell and Magnus Nilsson.
| Sep 30, 2014
USGBC, Bank of America name recipients of 2014 Affordable Green Neighborhoods Grant Program
Eleven projects have been selected for the 2014 Affordable Green Neighborhoods grant program. Each will receive $31,000 and an educational package to support their pursuit of LEED for Neighborhood Development certification.
Sponsored | | Sep 30, 2014
What are you doing to win business and improve morale?? VDC Director Kris Lengieza shares ways to do both
Bluebeam's Sasha Reed sits down with Kris Lengieza, Director of Virtual Design and Construction for Stiles Corporation, to learn how he approaches change management. SPONSORED CONTENT
Sponsored | | Sep 30, 2014
How project managers can manage technology
Not long ago, the role of a construction project manager revolved around working with people: employees, vendors, consultants, designers, subcontractors and owners. Today, project managers primarily manage information. SPONSORED CONTENT
| Sep 30, 2014
With its 'stacked volumes' scheme, 3XN wins bid to design high-rise in Sydney
By dividing the 200-meter building into five separate volumes and placing atria throughout each volume, the spaces become smaller, more intimate social environments, according to the Danish architects.
| Sep 29, 2014
10 common deficiencies in aging healthcare facilities
VOA's Douglas King pinpoints the top issues that arise during healthcare facilities assessments, including missing fire/smoke dampers, out-of-place fire alarms, and poorly constructed doorways.
| Sep 29, 2014
Snøhetta releases final plan for terraced central library in Calgary
The competition-winning New Central Library is now in the final design stages, after two years of community engagement on the part of design firms Snøhetta and DIALOG.