Brookfield and Johnson Controls to merge Australian and New Zealand property and facility services operations

By on November 22, 2012 in News

Brookfield Asset Management and Johnson Controls have agreed to merge their Australian and New Zealand property and facility services operations to create Brookfield Johnson Controls.

Brookfield Asset Management and Johnson Controls have agreed to merge their Australian and New Zealand property and facility services operations to create Brookfield Johnson Controls.
The merged entity will combine the local operations of Brookfield Multiplex Services, which provides real estate, facilities and project management services to a range of large corporate and government occupiers, with the Australian and New Zealand business of Johnson Controls Global WorkPlace Solutions (GWS), a provider of facilities, corporate real estate and energy management services.
Brookfield Johnson Controls will combine Johnson Controls GWS’s global operating model, industry expertise and technology expertise with Brookfield Multiplex Services’ regional infrastructure, local knowledge and established real estate, facilities and project management capabilities.
The merged entity will manage more than 3.9 million square metres of property in more than 9200 locations around Australia and New Zealand. Its revenue will be approximately $250 million, with a goal to double the size of the business over the next five years. The company’s client base includes major global corporations such as Agilent Technologies, GlaxoSmithKline and Cisco, along with a number of federal, state and local government agencies.
“This merger creates a new fully integrated real estate, facilities and project management provider, one of only a handful of companies in Australia and New Zealand able to offer such a broad range of services,” Jon McCormick, managing director, Brookfield Johnson Controls, comments.
“There is a clear opportunity to achieve accelerated growth in a growing market. Internal research values the outsourced property services market in Australia and New Zealand at A$18 billion, which is expected to grow by approximately 5 percent annually. Both government agencies and corporates are increasingly looking to outsource property management functions to get innovative and professional services which can increase efficiency and deliver bottom-line value. As a result, we see a real opportunity to draw on the expertise of our two global parent companies to provide a market-leading alternative.”
Brookfield Johnson Controls is the second partnership between Brookfield and Johnson Controls globally. The first, which was formed in Canada in 1992, is an established industry leader providing services to more than 12.5 million square metres in 11,500 locations across Canada.
Concurrent with the formation of Brookfield Johnson Controls in Australia, interests in the Canadian company will also be realigned. The Canadian entity will be renamed Brookfield Johnson Controls. The companies’ Canadian partnership has built a strong reputation in the financial services sector, counting many of Canada’s largest banks and financial institutions as clients.
“We expect the combined regional strength of Brookfield Multiplex Services, the Johnson Controls GWS international platform and the global expertise of our parent companies will be particularly compelling for banks, insurance companies and other financial institutions in the region,” McCormick states.
“Our target sectors also include the life sciences, technology, industrial and oil and gas markets while our global reach will appeal to larger companies with operations in Australia and New Zealand looking to grow into international markets.”
Iain Campbell, vice president and general manager, Johnson Controls Global Energy and WorkPlace Solutions, comments: “This merger represents an extension of the global Brookfield and Johnson Controls partnership. Based on a relationship now spanning three decades, and drawing together the highly complementary skill sets of our respective businesses, we are confident our new Australian and New Zealand business will have an immediate impact in this important market.”
Brian Kingston, CEO of Brookfield Australia, adds: “Brookfield and Johnson Controls have enjoyed great success in Canada using a similar model to the one that will be employed in Australia. The formation of this partnership was the next logical step in accelerating our growth in Australia and New Zealand, a market on which we place great importance and view with ongoing confidence.”
The merger agreement between Brookfield Multiplex Services and Johnson Controls GWS in Australia and New Zealand is subject to customary conditions precedent and is expected to close before the end of the calendar year. Brookfield Johnson Controls intends to begin operations from early 2013.

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