CBRE, the world’s largest real estate services firm, has agreed to pay $1.3 billion in cash for 60-percent ownership of London-based Turner & Townsend Holdings, one of the world’s largest firms that manages major construction projects.
The buy comes as developers prepare for a wave of infrastructure spending on roads, water and sewer system repairs and replacements, and renewable energy, The Wall Street Journal reported.
Many owners of the commercial properties CBRE manages are planning to add insulation, green energy systems, and otherwise reduce their buildings’ carbon dioxide footprint, the WSJ noted.
The purchase is part of CBRE’s transformation from a company largely collecting commissions from transactions to one that charges recurring fees for services such as property management, project management, and consulting, the WSJ said.
TREND FORECAST: This is another instance of the Bigs using their wealth to annex another portion of the economy, amassing more economic clout and political power as they fatten their portfolios. We said it in our 25 May issue this year (“Bigs Get Bigger, Mom and Pops Go Bust”) and it remains true: the few Bigs will continue to gain financial and political power and extend their dominance through all areas of our lives.