Australian listed global property services firm URL Limited has sold DTZ, its global property services business, to a consortium for a reported US$1.21 billion.
Writing to his staff by letter yesterday Brian Koh Weng Chuan, Executive Director of DTZ Nawawi Tie Leung Property Consultants Sdn Bhd in Malaysia, said: “I am writing to inform you of an important and exciting step in the development of DTZ.
“Our parent company, UGL Limited has entered into an agreement with the TPG and PAG Consortium, a group that includes TPG Capital (TPG), PAG Asia Capital (PAG), and Ontario Teachers’ Pension Fund (OTPP), for the TPG and PAG Consortium to acquire DTZ.
“This is a strategic move that enables us to become a private, stand-alone company with the backing of some of the world’s top financial investors. This significant milestone will provide our business with the flexibility and funding to further enhance our service delivery, support our people and deliver more value to our clients”.
Koh added: “I would like to assure you that it is business as usual for DTZ. There will be no impact on our existing contracts, service and partnerships. We remain focused on delivering outstanding service to our clients, wherever you need us to be.
“We are excited about this key opportunity to realize the strong growth potential of the DTZ brand with its proud legacy of nearly 230 years of outstanding property services. TPG is one of the largest and most progressive private equity firms, PAG brings depth and expertise in Asia and OTPP knows the property space well having been a long time investor in real estate. Together, they have chosen to invest in DTZ, and are excited to help us grow and fully develop our company. Our focus will be to provide the full range of property services around the country and around the world, implement advanced technologies, and recruit and retain the best management, professional and technical teams to serve our clients.
We thank you for your ongoing support of DTZ, and we look forward to continuing to serve your business needs.”
Media commentators have attributed the sale as a move by UGL to sell its DTZ operations to cut debt.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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