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
| Feb 21, 2013
BD+C's 2011 White Paper: Zero and Net-Zero Energy Buildings + Homes
We submit our eighth White Paper on Sustainability in the hope that it will inspire architects, engineers, contractors, building owners, developers, building product manufacturers, environmentalists, policymakers, government officials, corporate executives, officeholders, and the public to foster the development of net-zero energy buildings and homes.
| Feb 21, 2013
BD+C's 2008 White Paper: Green Buildings + Climate Change
In this White Paper, we provide concrete ways in which AEC professionals can have a positive role in addressing climate change.
| Feb 21, 2013
Construction team chosen for world's tallest building in Jeddah, Saudi Arabia
Construction team chosen for world's tallest building in Jeddah, Saudi Arabia.
| Feb 19, 2013
Luxury multifamily project under way in Atlanta; 215 residences planned
Hines Multifamily is building @1377, a luxury complex comprising 215 "urban-style residences" in Atlanta's Brookhaven neighborhood.
| Feb 15, 2013
Could the student housing boom lead to a bubble?
Student housing has been one of the bright spots in the multifamily construction sector in recent years. But experts say there should be cause for concern for oversupply in the market.
| Feb 14, 2013
5 radical trends in outpatient facility design
Building Design+Construction combed the healthcare design and construction sector to evaluate the latest developments in outpatient facility designs. Here are five trends to watch.
| Feb 14, 2013
Brasfield & Gorrie breaks ground on New College Football Hall of Fame in Atlanta
General contractor Brasfield & Gorrie is scheduled to kick off construction on the new College Football Hall of Fame in downtown Atlanta. With an anticipated completion date of fall 2014, the $66.5 million project will continue the revitalization of the city’s tourist district.
| Feb 14, 2013
Firestone projects recognized for roofing excellence
Firestone Building Products has been awarded the 2012 RoofPoint Excellence in Design Award in two categories: Global Leadership and Advancing Sustainable Roofing.
Smart Buildings | Feb 14, 2013
Minneapolis joins energy benchmarking trend for commercial buildings
Minneapolis is the latest major metro to require large commercial buildings to benchmark and disclose their energy and water use.