DTZ Consolidates Asian Operations
DTZ Consolidates Asian Operations With 100% Integration Of DTZ Debenham Tie Leung In North Asia
The board of DTZ Holdings plc has announced that it has significantly strengthened its operations in Asia Pacific with the purchase from HK Millennium Limited of the remaining 70% it did not already own of DTZ Pacific Holdings Limited (“DTZ North Asia”), which owns and operates DTZ Debenham Tie Leung across mainland China, Hong Kong and Taiwan. DTZ Holdings plc previously owned 30% of DTZ North Asia, through purchases of its equity in December 1999 and January 2002.
A consideration of HK$356.9 million (£23.4 million) will be paid at completion and will comprise shares in DTZ Holdings plc to the value of HK$278.6 million (£18.3 million), with the remainder to be paid in cash. CY Leung, Chairman of DTZ North Asia, has agreed to take his share of the consideration entirely in DTZ Holdings plc shares. As a result of this transaction, CY Leung will increase his shareholding from 664,063 shares to 2,628,305 shares. He will also take up the new post of chairman of Asia Pacific.
DTZ’s decision to buy the remaining equity of DTZ North Asia reflects the business’ continued success and growing market share, as well as its proven fit into DTZ’s global network. With the move to full ownership of DTZ North Asia, and following on from the acquisitions in South East Asia and New Zealand over the last year, DTZ now has majority ownership of its operations in all of the major markets in Asia Pacific. Significant investment also continues to be made in the Group’s businesses in Japan and India, combined with recent acquisitions and expansion in Australia.
DTZ North Asia provides a comprehensive range of property services through its network of 1,900 employees in full service offices located in 13 cities, 11 of which are in mainland China, with the remaining two in Hong Kong and Taiwan. In addition, the business employs a further 2,800 property management staff and has project offices in a further 66 cities. In the year ended 31 December 2005, DTZ North Asia reported turnover of HK$477.3 million (£31.3 million) and profit before tax of HK$31.9 million (£2.1 million). As at 31 December 2005, the Company reported gross assets of HK$218.4 million (£14.3 million).
While further investment is anticipated to continue the development of the DTZ North Asia business, the board of DTZ anticipates that the full integration of DTZ North Asia into the DTZ international network will bring major benefits in the evolution of its service offering and brand in the region, particularly in light of the ongoing strength of the Chinese economy. The consolidation of the relationship between DTZ Holdings plc and DTZ North Asia also provides a valuable platform from which to expand the network’s burgeoning cross-border instructions.
Following the acquisition, the existing management team of DTZ North Asia will remain in place, with two further appointees from DTZ joining the local board. In addition, CY Leung will join the board of DTZ Holdings plc, with immediate effect. He has entered into a revised employment contract, with a notice period of six months. A further announcement specifically relating to this appointment is being made to shareholders today.
Commenting on the acquisition, Mark Struckett, DTZ’s Chief Executive, said:
“We have had a very successful partnership with DTZ North Asia since its formation in 1993 and are delighted now to complete its integration with the rest of the Group. We are committed to continuing the development of our strong operations across Asia Pacific and the full integration of this leading Chinese business will significantly accelerate this strategy. We greatly look forward to sharing a prosperous and exciting future.”
CY Leung, Chairman of DTZ North Asia, added:
“The phenomenal growth in the Asia Pacific market is well documented and is set to continue for the foreseeable future. I have complete confidence that a full integration of DTZ’s regional operations will strengthen existing synergies in the business. It will also enable us to enhance and broaden the range of services we can offer to international clients to further establish a leadership position in our industry.”
For further information, please contact:
Ross Pickett, CEO DTZ New Zealand on (09) 374-6614.
Notes to Editors
DTZ is a leading global real estate advisory and consultancy firm. More than 10,000 staff, including those in DTZ North Asia, advise and act for leading multi-national companies, major financial institutions, governments, developers and investors in 40 countries around the world. With 200 offices in 163 cities, DTZ provides integrated services in corporate consulting, agency, brokerage, valuation, corporate finance, property management and research. In the Americas, DTZ delivers capital markets services and solutions to investors through DTZ Rockwood, and occupational real estate solutions to multi-national corporates through our US alliance with The Staubach Company. DTZ Holdings plc, which is the largest shareholder in the DTZ operations, is a publicly quoted company, listed on the London Stock Exchange since 1987. For further details, please visit the website at www.dtz.com.
DTZ North Asia’s principal activities are Commercial Agency, Residential Agency, Investment, Property Management Services, Valuation and Research, plus smaller operations that mirror other activities in the Group in areas such as Consultancy and Project Management. The company is the only international business to have been awarded a national Real Estate Appraisal licence for China.