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 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.
