Archive | DTZ

World property Th3Sep15 – Cushman & Wakefield reverse takeover complete

Cushman & Wakefield completes DTZ merger

Real estate services firms Cushman & Wakefield and DTZ completed their merger – effectively a reverse takeover – on 1 September. They will operate under the Cushman & Wakefield name.

The 2 firms merge with a combined total of $US5 billion in revenue, 43,000 employees, 4 billion m² under management and $US191 billion in transaction value.

DTZ was listed on the London Stock Exchange when it fell into administration in 2011 after an admission of debt made its shares near-worthless. Sydney-based engineering services company UGL Ltd bought the business from its administrators for $A120 million and sold the revived enterprise, including some valuable add-ons, last November for $A1.215 billion.

The buyer was an international private equity consortium led by TPG Capital Management LP, one of the former Texas Pacific Group arms. The other partners are independent alternative investment management group PAG Asia Capital and Ontario Teachers’ Pension Plan.

DTZ’s owners will stay with the venture in a $US2 billion buyout of Cushman & Wakefield’s 81% owner, the investment arm of Italy’s Agnelli family, Exor SpA. Exor paid $US565 million for an initial 67.5% in the real estate business in 2006. Management & employees retained the balance of shares.

The TPG consortium appointed former CBRE Group chief executive Brett White as executive chairman and kept global chief executive Tod Lickerman in his role. Mr White is chairman & chief executive of the new Cushman & Wakefield and Mr Lickerman is president.

Earlier story: World property W13May15 – DTZ/Cushman & Wakefield merger, Regus deal with Colliers, Fairway Bay part-owner bought out

Attribution: Cushman & Wakefield.

Regular leads: Europe Real Estate, Mingtiandi, Planetizen

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World property W13May15 – DTZ/Cushman & Wakefield merger, Regus deal with Colliers, Fairway Bay part-owner bought out

DTZ’s new owners fold it into Cushman & Wakefield
Regus signs deal with Colliers
Chinese Government company buys out Fairway Bay part-owner

DTZ’s new owners fold it into Cushman & Wakefield

International real estate consultancy DTZ, rescued from administrators 4 years ago and sold to a private equity partnership last November, will take over the Cushman & Wakefield name and No 2 spot in global revenue in a deal announced on Monday.

DTZ’s owners will stay with the venture in a $US2 billion buyout of Cushman & Wakefield’s 81% owner, the investment arm of Italy’s Agnelli family, Exor SpA.

Exor paid $US565 million for an initial 67.5% in the real estate business in 2006. Management & employees retained the balance of shares.

The new company will have over $US5.5 billion in revenue, over 43,000 employees and will manage more than 370 million m². That international revenue figure would place the enlarged Cushman & Wakefield just ahead of JLL but well behind CBRE, on $US9 billion.

In New Zealand, Cushman & Wakefield has an alliance relationship with Bayleys Real Estate, while DTZ has 3 offices.

DTZ was listed on the London Stock Exchange when it fell into administration in 2011 after an admission of debt made its shares near-worthless. Sydney-based engineering services company UGL Ltd bought the business from its administrators for $A120 million and sold the revived enterprise, including some valuable add-ons, last November for $A1.215 billion.

The buyer was an international private equity consortium led by TPG Capital Management LP, one of the former Texas Pacific Group arms. The other partners are PAG Asia Capital and Ontario Teachers’ Pension Plan.

The consortium appointed former CBRE Group chief executive Brett White as executive chairman and kept global chief executive Tod Lickerman in his role. Mr White will be chairman & chief executive of the new Cushman & Wakefield and Mr Lickerman becomes president.

Cushman & Wakefield’s pre-deal international & EMEA (Europe, Middle East & Africa) chief executive, Carlo Barel di Sant’Albano, gets “a senior global leadership role” and pre-deal North America chief executive John Santora becomes chief operating officer & chief integration officer.

Regus signs deal with Colliers

Global workplace provider Regus Group has signed a partnership agreement with Colliers International to accelerate & streamline its procurement of real estate in Australia & New Zealand.

Regus’s chief executive for the 2 countries, Paul Migliorini, said on Monday Colliers would work with Regus from assessing local market strategies for flexible workplaces to execution & project management.

Chinese Government company buys out Fairway Bay part-owner

A Hong Kong-listed shareholder in the Fairway Bay development at Gulf Harbour, Shanghai Zendai Property Ltd, has been bought out by a Chinese Government company after reporting a $HK639 million ($NZ112 million) loss for the year to December. In 2013 it made a $HK292 million ($NZ51 million) profit.

Shanghai Zendai’s main operations are in mainland China & Hong Kong, but it expanded internationally as it saw its home markets declining.

The buyer, Smart Success Capital Ltd, is a subsidiary of China Orient Asset Management (International) Holding Ltd (COAMI) and an indirectly wholly owned subsidiary of China Orient Asset Management Corp (COAMC), a state-owned enterprise organised under China’s Ministry of Finance. COAMI is the primary overseas platform of COAMC and serves as a link between COAMC’s domestic & international businesses.

At the HK20c offer price, Zendai was valued at $HK3 billion ($NZ530 million). Zendai wrote down the value of a Chinese development, Ordos City, by $HK321 million but said in March it still had net assets of $HK6.28 billion ($NZ1.1 billion). It said it had increased its finance costs by borrowing more, was hit by net losses of associates & joint ventures, and turnover fell as it delivered fewer properties.

In 2012, Shanghai Zendai and Shanghai Pengxin Group Co Ltd (Jiang Zhaobai) took 45% each in Top Harbour Ltd (the other 10% is held by local consultant Terry Lee), which paid $35 million for 32ha beside the eastern harbour at Gulf Harbour and started the Fairway Bay subdivision. It envisaged spending $550 million over 8 years on development, including subdivision for 1000 houses and building a 200-room hotel, 2000m² of commercial space and a 1000m² office block.

Shanghai Zendai bought 1600ha in the north-eastern Johannesburg suburb of Modderfontein at the end of 2013 and started work in January on a 15-year transformation of a site with a mine explosives factory on it into a residential, commercial & light industrial zone.

The guiding light for Shanghai Zendai’s expansion, founder & executive chairman Dai Zhikang, resigned last Friday as the buyout neared completion.

Earlier story: World property Mon15Nov13 – First stop Gulf Harbour, next Jo’burg, yield search, CMBS comeback, China fights own curbs

Attribution: DTZ, Cushman & Wakefield, Regus, Colliers, Shanghai Zendai

Regular leads: Europe Real Estate, Mingtiandi, Planetizen

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World property Sun9Nov14 – Canary Wharf bid, Brookfield results, DTZ sale

Canary Wharf owner rejects Qatar-Brookfield offer in advance
Brookfield entities report mixed returns
DTZ sale completed

Canary Wharf owner rejects Qatar-Brookfield offer in advance

The Qatar Investment Authority & Brookfield Property Partners LP haven’t formally bid yet for the majority owner of London’s Canary Wharf but, in case they do, Songbird Estates plc has rejected £2.95/share in cash as well short of worth considering. At that price, Songbird would be worth £2.184 billion.

Songbird owns 69.3% of Canary Wharf Group plc. As at 31 December 2013, Canary Wharf Group’s investment property portfolio, including land, was worth £5.515 billion. Canary Wharf has 35 completed buildings containing 1.5 million m² of office space on 39ha of formerly derelict dockland.

The Qatari authority owns 28.6% of Songbird, buying heavily after the global financial crisis began. The authority & Canary Wharf are also partners – Canary Wharf Group and the Qatar Investment Authority-owned Qatari Diar Real Estate Investment Co entered a joint venture in January 2013 to redevelop the Shell Centre site on London’s South Bank.

Songbird’s share price jumped on Friday to close at £3.10/share after getting as low as £2.30 just weeks ago.

Songbird independent chairman David Pritchard said in releases on Thursday & Friday the Qatari authority & Brookfield had made a preliminary approach “expressing an interest in formulating an offer for the company”.

But, he said: “This proposal significantly undervalues Songbird and does not reflect the inherent value of the business & its underlying assets. The group has an exceptional management team with a clear vision to deliver additional shareholder value, including from our 11 million ft² (1 million m²) development pipeline, the largest in London.”

Earlier story:
6 January 2013: Canary Wharf & Qatari Diar unveil South Bank development

Links: The Guardian, 6 November 2014, Qatari fund bids for Canary Wharf owner Songbird
Canary Wharf
Songbird

Brookfield entities report mixed returns

While the rumours of a Qatari-Brookfield bid for Songbird were confirmed on Thursday, one international Brookfield entity was releasing an upbeat quarterly result while its alternative asset manager had a mixed return.

Brookfield Asset Management Inc, a global alternative asset manager (which includes property along with a number of other asset classes), has $US200 billion of assets under management. It reported lower third-quarter earnings but higher earnings for 9 months – consolidated net income down from $US1.5 billion to $US1.1 billion for the quarter, up from $US3 billion to $US3.5 billion for 9 months. Per share, both the 3-month & 9-month figures fell – from $US1.85 to US83c for the quarter, from $US3.56 to $US2.39 for 9 months.

In Canada & the US, Brookfield Asset Management put a proposal on 23 October to buy the 30% of Brookfield Residential Properties Inc it doesn’t own (about 36.8 million shares) for $US23.00 cash/share (a total $US846 million) – 20% premium to the previous day’s close & 30-day volume-weighted average price.

Brookfield Property Partners LP (spun off from Brookfield Asset Management in April 2013, but still managed by it) reported strong third-quarter earnings on Thursday – funds from operations up from $US132 million to $US199 million for the quarter and from $US425 million to $US568 for 9 months, net attributable income up from $US235 million to $US978 million for the quarter, $US805 million to $US2.24 billion for 9 months, and up from US50c to $US1.37/unit for the quarter, $US1.73 to $US3.43/unit for 9 months.

The partnership acquired more of Brookfield Office Properties Inc & General Growth Properties Inc during the year, and recorded a $US178 million gain on its Canary Wharf investment. Nothing was mentioned in the results announcement about the pending offer for Canary Wharf’s majority shareholder, Songbird Estate plc.

Among its sector activities, Brookfield’s multi-family division boosted operational earnings on stable occupancy and, in October, bought a $US1 billion, 4000-unit Manhattan portfolio with a $US330 million equity investment, of which the partnership’s share was $US110 million.

“Occupancy of our multi-family operations at quarter-end was 94.1%, consistent with the prior year. In-place rents increased about 10% in the first 9 months of 2014 due to strong market conditions & rent step-ups on newly renovated units. We continued our renovation programme and remain on target to refurbish a total of 2000 units in 2014.”

In Sydney, Brookfield Multiplex has been appointed to build the $A800 million 235m Greenland Centre residential tower, which will be the tallest apartment tower in the cbd. The tower, on a 3969m² site at the corner of Bathurst & Pitt Sts, will have 66 levels, 470 apartments & 6 penthouses. The adjoining heritage building will be converted into a boutique 180-room 5-star hotel. Chinese Government development company Greenland Group Co Ltd, of Shanghai, and Brookfield Asset Management Inc bought the site in March last year in a joint venture.

Links:
Brookfield Asset Management
Greenland Centre, Sydney
Brookfield Property Partners

DTZ sale completed

Sydney-based UGL Ltd has completed the $A1.215 billion sale of international property consultancy DTZ, 3 years after buying the business from its administrators for $A120 million. The enterprise being sold this time includes some valuable add-ons.

The buyer is an international private equity consortium led by TPG Capital Management LP, one of the former Texas Pacific Group arms. The other partners are PAG Asia Capital and Ontario Teachers’ Pension Plan.

London-listed DTZ Holdings plc was on its way out the back door at the end of 2011 after an admission of debt made its shares near-worthless and it fell into administration. UGL lifted DTZ back up to become the dominant part of its business, then decided to focus once more on its traditional engineering services business.

UGL said on Thursday it would distribute $A3/share (a total $A50 million) from the net $A1 billion of DTZ sale proceeds, expected to be paid on 27 November.

TPG said former CBRE Group chief executive Brett White would become fulltime executive chairman of DTZ in March and global chief executive Tod Lickerman would continue in that role.

Mr Lickerman said: “DTZ now has the independent governance, strong capital base & speed-to-market of a private company, which will allow us to grow & serve our clients’ ever-changing needs.”

The new-look DTZ has already expanded in the US. In September, an affiliate of DTZ Investment Holdings (backed by the TPG & PAG consortium) entered into an agreement to acquire Cassidy Turley, with plans to combine it with the DTZ business during 2015.

Link: DTZ-UGL

Earlier story:
17 June 2014: DTZ sold to international consortium

Attribution:

Regular leads: Europe Real Estate, Mingtiandi, Planetizen, World Property Channel

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DTZ sold to international consortium

2½ years after being bought from its administrators for $A120 million, DTZ Holdings plc (plus some valuable add-ons) has been sold to an international private equity consortium for an enterprise value of $A1.215 billion.

DTZ’s 2011 purchaser, Sydney-based UGL Ltd, rebranded its existing real estate services operations as DTZ in 2012 and was looking for a buyer for the integrated real estate business from early last year.

Yesterday it confirmed it had a binding agreement for the sale to the consortium led by TPG Capital Management LP, one of the former Texas Pacific Group arms.The other partners are PAG Asia Capital and Ontario Teachers’ Pension Plan.

London-listed DTZ was on its way out the back door at the end of 2011 after an admission of debt made its shares near-worthless and it fell into administration. UGL lifted DTZ back up to become the dominant part of its business.

UGL said it expected the sale to be worth a net $A1.0-1.05 billion, depending on final capital gains tax assessments, transaction costs & other sale adjustments. Settlement is expected around the end of September.

UGL post-transaction will be a dedicated engineering, construction & maintenance service provider in Australia, New Zealand & South-east Asia.

UGL managing director & chief executive Richard Leupen, who will hand the reins of the company to Ross Taylor on 24 November after 14 years in charge, said UGL had built a leading global property services platform through both selective acquisitions & investing in organic growth.

“The sale price reflects the significant value we have created in building a unique platform over this time, delivering a highly positive result for UGL & its shareholders. The sale of DTZ to the TPG & PAG consortium will provide the business with the flexibility to undertake its next stage of growth.”

Mr Leupen’s replacement, Mr Taylor, has over 30 years of experience in the construction, engineering & real estate industries in Australia & internationally, most recently as chief executive at Tenix Group Pty Ltd, a private engineering & construction company delivering services in the gas, electricity, water, wastewater, heavy industrial & mining sectors in Australia & New Zealand. Over a period of 24 years he held various senior roles at Lend Lease Corp, most recently as the group chief operating officer.

Attribution: Company releases, participants’ websites.

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Darroch closes agency division

Published 17 September 2010

Darroch Ltd has closed its agency division and will continue as a valuation & research consultancy, still with a property management division.

Darroch is owned by Quotable Value Ltd, which also took control of the local agency business DTZ NZ Ltd last year. DTZ NZ Ltd is now owned by DTZ International Ltd, of London.

Darroch managing director Bill Osborne announced the divestment of the agency side of the business at a research breakfast on 1 September. It will take effect at the end of September. He said the decision to be “independent without compromise” meant having an agency division was a conflict.

However, he said Darroch would retain its alliance with the international DTZ business.

The property services company will have Murray Stevens as general manager of property services and Rob Hutchison as general manager of valuations.

Kevin Richards took a team with him when he moved from Jones Lang LaSalle to head agency at DTZ in 2005, but said the latest decision by Darroch was no surprise: “We’re pleased to be out of it. Most agents work with the rest of their company, but that doesn’t happen at Darroch. We needed to expand but we never got the support.”

He grew the agency division to 22 shortly after taking over in 2005, but by the time of the decision to divest the number was down to 9. Mr Richards said all had had offers of jobs elsewhere.

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Attribution: Company announcement, story written by Bob Dey for the Bob Dey Property Report.

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DTZ group makes £75 million loss, but new chief says it’s poised to benefit from recovery

Published 28 July 2009

DTZ Holdings plc, the UK-listed parent of the international DTZ real estate consultancy, dived to a £75 million loss in the year to April. The UK was the only area which made a profit.

 

The group has gone through a period of upheaval, placing a questionmark on chairman Tim Melville-Ross’s claim that it had taken decisive steps to adapt the business – “creating a business which will emerge competitively stronger”.

 

Revenue fell 18.4% to £364 million, the operating return before exceptional items went from a £16.4 million profit to a £33 million loss. Exceptional items reduced the 2009 return by £44.6 million (£15 million in 2008), taking the bottom line to a £75 million loss (£8 million profit in 2008). The 2009 exceptionals comprised £17.3 million of restructuring & redundancy costs and a £27.3 million non-cash impairment charge relating primarily to the sale of the group’s 50% interest in DTZ Rockwood in the US.

 

DTZ had a big clearout at the top – its group chief executive of 15 years left in November, replaced by former Barclays Plc chief operating officer Paul Idzik. 2 non-executive directors resigned and 3 executive directors were replaced, 2 of those staying on in senior positions.

 

Mr Melville-Ross said: “The ‘new’ DTZ will contain all of the familiar characteristics of client focus & creativity, based on a lean, global platform capable of transferring the best practices of one geography or skill set to any other within the organisation. I am confident that these measures will underpin the future prosperity of the group.”

And Mr Idzik commented: “Since January, we have taken aggressive action to reduce operating costs, rationalise headcount and enhance the discipline within our budgeting, marketing & reporting processes. We are transitioning our divisions to operate as united businesses in order to accelerate the development of specialised skills & the delivery of a globally joined-up product for clients.

 

“These changes, coupled with the group’s strengthened financial position, will ensure that DTZ emerges from this ongoing process of change more ‘match-fit’ & competitive, and well poised to enjoy the growth opportunities that will return as markets recover.”

 

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Attribution: Company release & accounts, story written by Bob Dey for the Bob Dey Property Report.

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Oysters galore at DTZ

Published 27 May 2007

DTZ NZ Ltd’s Auckland office opened May by opening oysters – Bluff, and lots of them, for a client function at the Hilton Hotel on Princes Wharf.

More than 250 guests from the property fraternity & related businesses turned out for the oyster & chardonnay night.

DTZ chief executive Ross Pickett said: “This has become our signature annual function. We had a great evening & attendance, which once again offered us a chance to thank our clients in a fittingly luxurious fashion.”

The Hilton’s Aquamarine room ensured the perfect setting – harbour views, plush surrounds & sophisticated music providing just the right atmosphere to enjoy fine wine, food & great company.

Click all the photos to enlarge. From top to bottom, left to right:

Photo on right: Peter Mence; Saatyesh Bhana & Mark Norman from ING NZ Ltd

Left: David Comery of Mt Wellington Trust Hotels, Shane Evans & David Bower of DTZ

Right: Justin Stortelers of DTZ & Emma Mountfort of Investment Property Titles Ltd

Left: Ross Pickett, DTZ, gives the welcoming address

Right: Dianne Rice, Griffiths Group; Wanley Simpson, Creative Spaces; Don Linderberg,

Waitakere Properties Ltd

Left: Mark Parlane, DTZ; Bridget Fowler, Deborah Knight & Sara Macdonald of

Trust Investments

Right: Ross Pickett, DTZ; Tim Stables, Deloitte; Jason Galea, ANZ Banking Group

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Attribution: Photos courtesy of DTZ, DTZ release, story written by Bob Dey for this website.

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DTZ UK takes full control of North Asia business

Published 23 December 2006


UK-listed DTZ Holdings plc has taken full control of the company which owns & operates DTZ Debenham Tie Leung across mainland China, Hong Kong & Taiwan.



DTZ Holdings previously held 70% of DTZ Pacific Holdings Ltd (DTZ North Asia) through purchases in 1999 & 2002 and has bought the remaining 30% from HK Millennium Ltd. DTZ will pay $HK356.9 million on completion, $HK78.3 in cash and the bulk in shares.


DTZ North Asia chairman CY Leung (Leung Chung-ying, also convenor of Hong Kong’s Executive Council) will take his share of the consideration entirely in DTZ Holdings shares. As a result of this transaction, he will increase his shareholding from 664,063 shares to 2,628,305 shares, will take up the new post of chairman of Asia Pacific and will join DTZ Holdings’ main board.


DTZ Holdings increased its stakes in its South-east Asian & New Zealand operations over the past year and now has majority ownership of its operations in all of the major markets in Asia & the Pacific. It has been investing in Japan & India and expanding in Australia.


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Attribution: Company statement, story written by Bob Dey for this website.

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Khyber Pass tenancy, industrial opportunity in Rodney

Published 24 September 2006


DTZ (NZ) Ltd sales & leasing:



Leasing:


Grafton, 175 Khyber Pass Rd, a corner ground-level tenancy has been leased at $35,418.83 plus gst/year, with 5 parking spaces at $6500 plus gst/year. The building has 3 office levels & basement parking. The new tenant will use the premises for a printing/reproduction business. (Anthony Law/Scott Whitten, DTZ Auckland)


Industrial tender:


Riverhead, 24 Deacon Rd, 4.1ha of the old Carter’s Mill site on the corner of Deacon & Forestry Rds is for sale by tender, deadline Friday 6 October. Ian Wolfgram & Marie-Anne Molloy (DTZ Auckland) said the site was a significant piece of industrial real estate in Rodney District: “With a lack of industrial land around Auckland, this is an exciting opportunity that would be suitable for a subdivision or an owner-occupier.”


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Attribution: DTZ release, story written by Bob Dey for this website.

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Anzac Ave retail space and a service station change hands

Published 25 July 2006


Recent sales & leasing activity by DTZ (NZ) Ltd:



Sales:


CBD eastern fringe, Unit A, 75 Anzac Avenue, has been sold to a private investor for $1.13 million. The area sold comprises the whole ground-floor retail space of 556m² plus 3 parking spaces, which the Japan Mart Japanese supermarket has occupied since 1996, on current gross rent of $88,533. Its lease ends in 2008. The 4-storey building was formerly known as Anzac House and was developed as Romano Apartments in 1995. The entire development comprises ground-floor retail space & 19 apartments on 3 levels. (Agnes Teh, DTZ Auckland)


Manurewa, corner Great South & Mahia Rds, a 4327m² corner freehold service station site has been sold by private treaty for $2.2 million. Both buyer & vendor are private investors. The service station is leased to Mobil Oil NZ Ltd until 2023 for an annual rental of $160,000, putting a 7.3% yield on the sale price.  (Agnes Teh, DTZ Auckland)


Leasing:


Penrose, 101 Station Rd, 334m² of office space has been leased to Richmond Fellowship NZ, a nationwide training organisation which plans to use this space as a training facility.  The property comes with 8 parking spaces.  (Leon Lin, DTZ Auckland)


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Attribution: DTZ release, story written by Bob Dey for this website.

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