Johnson Controls Announces $1.36 Billion Contract
28 March 2000
Johnson Controls Announces $1.36 Billion Contract
ATLANTA, March 27 Johnson Controls, Inc. has
announced a $1.36 billion, five-year agreement to manage the Canadian Real
Estate operations of Royal Bank of Canada. The contract was awarded to
Canada's leading provider of integrated facility management services,
Brookfield LePage Johnson Controls (BLJC), a Johnson Controls majority-owned
joint venture.
Royal Bank selected BLJC to provide real estate operations services for
over 1,500 facilities totaling in excess of 15 million square feet of space
across Canada. The portfolio includes over 1,300 leased and owned Royal Bank
branches located from Newfoundland to British Columbia.
Under this progressive outsourcing agreement, BLJC will be responsible for
managing an annual budget of $400 million for Royal Bank's real estate
operations comprising operations management, project management, portfolio
management, leasing and brokerage services and support services.
The agreement, effective July 1, 2000, includes cost-saving guarantees and
service level improvements over the initial five-year contract that may be
extended for an additional six years.
Under the agreement, BLJC will provide career opportunities for the
approximately 100 Royal Bank employees whose positions are affected by the
deal to ensure that there is minimum service disruption.
"We are delighted to have the opportunity to work with Royal Bank of
Canada and to be an integral part of a solution that assists them in achieving
their business objectives," said BLJC President Dave Glass.
"This agreement is important for all of our stakeholders," said Peter
Currie, Royal Bank Chief Financial Officer and Vice Chairman. "This agreement
reflects our focus on improving core operations and managing cost effectively
while treating employees fairly."
"We are proud of the evolution of our business venture with BLJC and its
ability to service our Canadian client base as a single-source provider of
integrated facility management, and brokerage services," states Mike Lamach,
Vice President and General Manager for Johnson Controls Integrated Facility
Management, Commercial North America. "The size and scope of the Royal Bank
Contract makes significant impact on Integrated Facility Management's overall
business capacity for providing a broader service offering to support our
clients' evolving business requirements."
Gord Hicks, BLJC Executive Vice President added, "This is the largest
corporate real estate operations outsourcing initiative in Canadian history.
This contract will pave the way for other organizations to embrace this as a
viable solution to focus on core business activities while reducing cost and
improving services at the same time."
ABOUT JOHNSON CONTROLS:
Johnson Controls Integrated Facility Management, with headquarters in
Atlanta, provides facility management and workplace consulting services for
many Fortune 500 companies, managing more than one billion square feet of
facilities around the globe.
Johnson Controls, Inc., is a global market leader in automotive systems
and facility management and control. In the automotive market, it is a major
supplier of seating and interior systems and batteries. For non-residential
facilities, Johnson Controls provides building control systems and services,
energy management and integrated facility management. Johnson Controls,
founded in 1885, has headquarters in Milwaukee, Wis. Its sales for 1999
totaled $16.1 billion.
ABOUT BROOKFIELD LEPAGE JOHNSON CONTROLS (BLJC):
Brookfield LePage Johnson Controls and its related companies manage,
operate and/or maintain facilities worldwide in support of corporate and
public sector clients including data centers, corporate headquarters,
government complexes, postal systems, health care, high-tech research
facilities and laboratories. The Brookfield LePage Johnson Controls
organization was established in 1992 as a joint venture between Brookfield
Properties and Johnson Controls World Services Ltd., in response
to the growing demand for professional, world-class facility management
service in Canada. With offices across Canada and over 1100 employees, BLJC
provides services to a wide variety of corporate and government clients
including Nortel Networks, Canada Post Corporation and Public Works &
Government Services Canada. For more information visit BLJC's website
http://www.bljc.ca
ABOUT ROYAL BANK OF CANADA:
Royal Bank of Canada (RY) is a diversified global financial services group
and a leading provider of personal and commercial banking, investment and
trust services, insurance, corporate and investment banking, on-line banking
and transaction-based services including custody. The group's main business
units include Royal Bank, RBC Dominion Securities, Royal Investment Services,
RBC Insurance and Global Integrated Solutions. The group has 50,000 employees
who serve 10 million personal, business and public sector customers in 30
countries. For more information visit Royal Bank's website at
http://www.royalbank.com