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
| Mar 13, 2012
China's high-speed building boom
A 30-story hotel in Changsha went up in two weeks. Some question the safety in that, but the builder defends its methods.
| Mar 13, 2012
Commercial glazer Harmon expanding into Texas
Company expanding into the Texas market with a new office in Dallas and a satellite facility in Austin.
| Mar 13, 2012
Worker office space to drop below 100-sf in five years
The average for all companies for square feet per worker in 2017 will be 151 sf, compared to 176 sf, and 225 sf in 2010.
| Mar 12, 2012
Improving the performance of existing commercial buildings: the chemistry of sustainable construction
Retrofitting our existing commercial buildings is one of the key steps to overcoming the economic and environmental challenges we face.
| Mar 7, 2012
Firestone iPad app offers touch technology
Free app provides a preview of Firestone’s Roots to Rooftop Building Envelope Solution with an overview of all the products from ground and stormwater management solutions, to complete wall panel and commercial roofing system applications.
| Mar 7, 2012
LEO A DALY opens new office in Riyadh, Saudi Arabia
Jay N. Kline, Regional Manager – Saudi Arabia, to lead new office.
| Mar 7, 2012
Turner appointed Batson-Cook CFO and treasurer
Cecil G. Hood to continue in advisory role.
| Mar 7, 2012
Thornton Tomasetti names Dowdall VP of Kansas City office
Dowdall will be responsible for supporting the Property Loss Consulting, Building Performance and Building Sustainability practices nationally.
