CBRE to buy Johnson Control’s real estate biz for $1.47 bn

Real estate consultancy firm CBRE has entered into an agreement to acquire Johnson Controls’ work space solution business GWS for $1.475 billion in an all cash deal.

Together, CBRE and GWS will manage nearly 5 billion square feet of real estate and corporate facilities globally, including 1.4 billion square feet in Asia Pacific, CBRE said in a statement.

“Global WorkPlace Solutions (GWS) will operate as part of CBRE’s Global Corporate Services (GCS) business, which has increased revenue at a double-digit compound annual growth rate over the last decade,” it said.

CBRE and Johnson Controls also announced a 10-year strategic relationship. As per the agreement CBRE will provide Johnson Controls an integrated corporate real estate services, including facilities management, project management and transaction services on more than 50 million square feet.

Whereas Johnson Controls will offer building automation systems and related services to CBRE for its managed properties.

John Murphy, the president of GWS, will join CBRE as global chief operating officer of its GCS business. — Agencies