4 December 2012
Brookfield Asset Management and Johnson Controls have agreed to merge their Australian and New Zealand property and FM operations.
The merged entity Brookfield Johnson Controls (BJC) will include local operations of Brookfield Multiplex Services which provides real estate, FM, and project management to large corporate and government occupiers.
Also under the BJC umbrella will be Johnson Controls Global WorkPlace Solutions, a provider of FM, corporate real estate and energy management services.
The new company will manage more nearly 4 million square metres (more than 43 million square feet) of property in more than 9,200 locations.
The merger is the second for the two companies which joined forces in Canada in 1992.
A joint statement said revenue of the merged Australia-New Zealand business will be around $250 million, with a goal to double the size of the business over the next five years.
Clients include global corporations such as Agilent Technologies, GlaxoSmithKline and Cisco, along with a number of federal, state and local government agencies.
“There is a clear opportunity to achieve accelerated growth in a growing market,” said Jon McCormick, managing director of Brookfield Johnson Controls.
He said the companies estimate that the outsourced property services market in Australia and New Zealand stands at $18 billion and is expected to grow by around 5 per cent a year.
“Both government agencies and corporations are increasingly looking to outsource property management functions to get innovative and professional services which can increase efficiency and deliver bottom-line value.
The merged Canadian operations covers nearly 12.5 million square metres (134 million square feet) in 11,500 locations across Canada. With the formation of Brookfield Johnson Controls in Australia, the Canadian entity will be renamed Brookfield Johnson Controls.
The companies’ Canadian partnership has many of Canada’s largest banks and financial institutions as clients. “This expertise will be used by Brookfield Johnson Controls to serve Australian and New Zealand financial services clients, among others,” the statement said.