Brookfield Asset Management Inc. and Johnson Controls have agreed to merge their Australian and New Zealand property and facility services operations to create Brookfield Johnson Controls – a new entity targeting $18 billion (Australian) outsourced property services market in Australia and New Zealand.
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 leading provider of facilities, corporate real estate and energy management services.
The newly merged company will manage more than 3.9 million square metres of property in more than 9,200 locations around Australia and New Zealand. Its revenue will be approximately A$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.
Jon McCormick, managing director, Brookfield Johnson Controls, said: “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, provides services to more than 12.5 million square metres (134 million square feet) 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.
Iain Campbell, vice president and general manager, Johnson Controls Global Energy and WorkPlace Solutions, said: “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, said: “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.