Colliers International today unveiled a six-fold expansion in its project management business in mainland China with the acquisition of Shanghai-based SIP Group.
“We are delighted to have the experienced professionals from SIP join our growing project management platform in China,” said David Hand, Chief Executive Officer for Asia Pacific at the international property consultancy in a statement. “The combination of Colliers’ client-focused professionals and SIP’s project execution excellence provides our domestic Chinese and foreign clients with outstanding capabilities across all project types, specialities, and industries, throughout China and beyond.”
The corporate merger expands Colliers’ mainland project management team to more than 110 project managers from a team of 15-16 people prior to the acquisition. The new team will provide design consulting, construction management and consultancy services, post-construction and decommissioning consulting to clients, as well as tender management and due diligence services on behalf of real estate owners and occupiers.
Industrial and Retail Businesses Help Drive Merger
While financial terms of the deal were not disclosed, in a conversation with Mingtiandi, SIP Group managing director Oliver Li, indicated that the move enabled the new team to provide “a more complete lifecycle of projects to clients,” while also enhancing career opportunities for team members.
Colliers’ China co-head Tammy Tang indicated that the move was critical to enhancing the range and depth of services that Colliers can offer clients. “We already have a sizable industrial business, and now we will be able to serve our clients through one more step. All of our clients are looking for speed to market, this will allow us to help companies to get up and running just that much faster faster and with less risk.”
SIP built its early business managing creation of production facilities across China and has overseen the construction of manufacturing plants for leading auto safety supplier Autoliv, as well as for new energy vehicle producer Nio.
The SIP acquisition also sees Colliers homing in on opportunities for serving retail clients, in addition to supporting office projects. “We are restructuring our retail business and the SIP acquisition will help us to better serve brands,” Tang noted. SIP already has experience managing retail projects for sports apparel brand Under Armour as well as for Swarovski and GAP.
Adding 50 Years of Project Management Experience to the Team
Colliers see the addition of management expertise as key to the merger with SIP Founder Geoff Mills, joining the Canadian firm’s team along with Oliver Li, with both executives having served 25 years with SIP prior to the merger.
Under the new arrangement Li will have dual reporting responsibilities to Tang and Colliers’ Asia Head of Project Management Saacketh Chawla. Harco te Lindert, who joined Colliers one year ago as Head of Project Management for China, will be reporting to Li under the new arrangement.
“We have a strong pipeline and with the combined business we expect this to be a high growth year for Colliers,” Tang commented. The company expects a two to three month adjustment period as the SIP team is integrated into the larger firm’s China and international operations.