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
| Apr 27, 2012
CSM Group names Comerford as senior project manager
Comerford’s responsibilities include directing and verifying contract compliance by the trade contractors to ensure the owner’s expectations are met in respect to a quality finished project.
| Apr 27, 2012
Hampton Bays Middle School winner of the first National Green Ribbon Schools Program
School was the first LEED-certified public school in the state of New York.
| Apr 26, 2012
USGBC announces inaugural Green Apple Day of Service
On Sept. 29, 2012, participants from all over the world will volunteer to make the schools and campuses in their communities healthier and more sustainable.
| Apr 26, 2012
Gensler's Leiserowitz: Employs holistic philosophy to foster clients' creativity, comfort
Leiserowitz became regional managing principal in Chicago for San Francisco-based architecture and design giant Gensler a little more than a year ago.
| Apr 26, 2012
Blackney Hayes Architects launches new engineering division
The new division, BHH Engineers, will be led by Mark Hershman, PE.
| Apr 26, 2012
Energy efficiency requirements heighten the importance of proper protection for roofing systems
Now more than ever, a well-insulated and well protected roof is critical in new or renovated commercial buildings.
| Apr 26, 2012
Orange County, Fla. high school receives NAIOP “Public Development of the Year” award
School replacement designed by SchenkelShultz Architecture and constructed by Williams Co.
| Apr 25, 2012
Bubble skyscraper design aims to purify drinking water
The Freshwater Skyscraper will address the issue of increasing water scarcity through a process known as transpiration
| Apr 25, 2012
Thornton Tomasetti/Fore Solutions provides consulting for Biologics Support Center
Project receives LEED Gold Certification.
| Apr 25, 2012
McCarthy introduces high school students to a career in construction
High school students from the ACE Mentoring Program tour the new CHOC Children’s Patient Tower in Orange, Calif.