ETC and OrangeTee Group have announced their merger on Feb 24, forming a new holding company with a yet-to-be-revealed name. According to ETC CEO, Desmond Sim, this is not an acquisition, but rather a collaboration between the two companies.
Sim will continue to serve as CEO of ETC and will also take on the role of group CEO in the merged entity. Meanwhile, Justin Quek, CEO of OrangeTee & Tie, will be the deputy group CEO.
The new company will focus on consultancy and advisory services while OrangeTee will prioritize proptech and its real estate agency business, which is supported by 2,803 salespersons registered with the Council for Estate Agencies (CEA) as of Feb 24.
The combined entity will have a staff of over 520 in addition to the large salesforce. Sim believes that by leveraging each other’s expertise, resources, and networks, the new company will be able to drive growth, create value for stakeholders, and achieve the necessary scale in today’s dynamic real estate industry.
This merger builds upon the previous joint venture in August 2017, when the former Edmund Tie and OrangeTee merged their associate businesses under a new entity, OrangeTee & Tie. This joint venture propelled OrangeTee & Tie to the third spot among the top three agencies with a salesforce of over 4,000 agents. In this deal, the former Edmund Tie took a 20% stake in OrangeTee & Tie.
The latest merger between ETC and OrangeTee was made possible by Triplestar Holdings and TH Investments, both related to the family of Roland Ng, managing director and group CEO of Tat Hong Holdings. These entities acquired a stake in ETC through a management buyout in 2016. After some of the original shareholders retired, the company bought back their shares, increasing Triplestar and TH Investments’ stake to around 60%. Currently, Triplestar Holdings and TH Investments own 100% of ETC.
This year marks ETC’s 30th anniversary, a significant milestone for the company, according to Sim. In line with this celebration, ETC has rebranded to ETC.
As for OrangeTee Group, it was founded in 2000 and will also be celebrating its 25th anniversary this year. Led by the board of directors and supported by the C-suites, which include Quek, CEO of OrangeTee & Tie, Marcus Oh, managing director of OrangeTee Advisory, Teo Yak Huat, CFO, and Christine Sun, chief researcher and strategist, the company is an investment holding company.
Quek believes that with a strengthened brokerage and consultancy team and advanced proptech, they are well-equipped to deliver innovative and seamless solutions in all real estate sectors.
Major stakeholders in OrangeTee Group include Tokyu Livable Inc., which acquired a 22.5% stake in the company in 2014. Tokyu Livable is a subsidiary of Tokyu Fudosan Holdings, one of Japan’s largest real estate agencies with 198 offices nationwide. Private property fund Vogue Capital Group is also a shareholder.
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Both Tokyu Livable and Vogue Capital will retain a stake in the new holding company post-merger, alongside Ng’s Triplestar Holdings and TH Investments.
Last year, ETC expanded its presence in the ASEAN region by opening an office in Johor Bahru through its joint venture company in Malaysia, Nawawi Tie. The company also has a presence in Penang and Thailand through its associate, Edmund Tie & Co (Thailand).
Sim believes that this merger will present more opportunities for the company in the ASEAN region and Japan, especially with the support of their relationship with Tokyu Livable.