CBRE’s Q2 revenues jump 20% to $6.4bn

Financial results are posted just days after the firm announced the acquisition of Turner & Townsend for US$1.3 billion.

By João Marques Lima

Founder and Editor, The Tech Capital

4 Mins

July 29, 2021 | 1:04 PM BST

CBRE’s Q2 revenues jump 20% to $6.4bn

Bob Sulentic, president and chief executive officer of CBRE. Source: CBRE

The Tech Capital

CBRE Group, Inc. (NYSE:CBRE) has reported a 20% growth in consolidated revenues for Q2 2021 compared to the same quarter last year as the company’s business segments delivered revenues of $6,459 million in Q2 2021, versus $5,381 million in Q2 2020.

The Global Workplace Solutions (GWS) segment, under which CBRE’s data centre assets sit, generated $4,083 million in revenue, an 8.3% increase on Q2 2020.

In its report, CBRE highlighted that facilities management, which is largely contractual, saw net revenue rise 10% (6% local currency), with strong growth within data centres and local facilities management.

Project management benefited from a continued rebound in construction activity, which helped to fuel 15% (11% local currency) net revenue growth.

“The new business pipeline continues to have strong representation across client and property types that are benefiting from secular shifts accelerated by Covid, such as life sciences, technology and logistics companies, as well as growing demand for data centre management,” it reads in the report.

Bob Sulentic, president and chief executive officer of CBRE, said: “The commercial real estate market has offered up significant opportunity to diversify across asset type, business lines, client type and geography. We have moved decisively to capitalize on this opportunity and are making investments and driving organic growth initiatives that will continue this trend.”

The quarterly results come just days after CBRE’s announcing it would be acquiring a 60% ownership interest in Turner & Townsend Holdings Limited for approximately £960 million ($1.3 billion).

Turner & Townsend provides program management, cost consultancy, project management and advisory consulting services for clients in 46 countries.

It operates across three business segments: Real Estate (62% of net revenue) – serving investors and occupiers across all property types, including data centres and life-science properties; Infrastructure (31% of net revenue) – notably, transportation, environmental and power generation projects, and Natural Resources (7% of net revenue) – renewable energy, alternative fuels, liquified natural gas and other projects.

For the 12 months ended April 30, 2021, Turner & Townsend’s net revenue totalled approximately £665 million ($923 million) and adjusted EBITDA totalled approximately £124 million ($172 million).

Sulentic said: “We see sizable secular growth opportunities in project management, which are being propelled by rising public and private infrastructure investment and the drive to a low-carbon global economy. Turner & Townsend is by far the best firm to help us realize our ambitions for this business. It is an exceptionally well-run company with a first-rate brand, enviable client base and expertise that complements our capabilities.”

Turner & Townsend will be governed by a new Board of Directors, consisting of three CBRE executives –Sulentic, Jack Durburg, Global CEO, GWS, and Chandra Dhandapani, Chief Transformation Officer and COO, GWS, and three Turner & Townsend executives – Clancy, Jeremy Lathom-Sharp, Finance Director, and James Dand, Chief Operating Officer.

The transaction is subject to regulatory approvals and other customary closing conditions. Closing is expected in the fourth quarter of this year.

Morgan Stanley & Co. LLC is acting as financial advisor and Simpson Thacher & Bartlett LLP and Dentons are acting as legal advisors to CBRE. Rothschild & Co is acting as financial advisor and Pinsent Masons LLP as legal advisor to Turner & Townsend.


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João Marques Lima

Founder and Editor, The Tech Capital

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