On February 24, two real estate giants ETC and OrangeTee Group announced their plans to merge and form a new holding company, whose name is yet to be revealed. “It is a collaborative merger of minds, not a takeover,” explains ETC CEO Desmond Sim.
Sim will take on the role of group CEO for the newly merged entity, while OrangeTee’s CEO Justin Quek will become deputy group CEO. ETC will now focus primarily on consultancy and advisory services, while OrangeTee will concentrate on proptech and its real estate agency business. The agency currently has a network of 2,803 salespersons registered with the Council for Estate Agencies (CEA) as of February 24.
The merger between the two companies, which began as a joint venture in 2017, will create a combined force of over 520 staff and more than 2,803 salespersons. “By combining our expertise, resources and networks, we can drive meaningful growth, create value for all stakeholders and achieve the scale needed to thrive in today’s dynamic real estate landscape,” says Sim.
The merger was made possible with the support of Triplestar Holdings and TH Investments, both companies related to the family of Roland Ng, managing director and group CEO of Tat Hong Holdings. The two companies acquired a stake in ETC after a management buyout in 2016. When some of the original shareholders retired, ETC bought back their shares, giving Triplestar Holdings and TH Investments a 60% stake. Today, the two companies hold 100% stake in ETC.
This year marks the 30th anniversary of ETC, which was recently rebranded as ETC from Edmund Tie & Co. On the other hand, OrangeTee Group was incorporated in 2000 and is celebrating its 25th anniversary this year. The group is led by a board of directors and supported by CEO Quek, managing director of OrangeTee Advisory Marcus Oh, CFO Teo Yak Huat, and chief researcher and strategist Christine Sun.
“With a strengthened brokerage and consultancy team supported by advanced proptech, we are set to scale our capabilities to deliver innovative, seamless solutions across all real estate sectors,” says Quek.
Stakeholders in OrangeTee Group include Tokyu Livable Inc., which took a 22.5% stake in the firm in 2014. Tokyu Livable is a subsidiary of Tokyu Fudosan Holdings, the real estate business of conglomerate Tokyu Group. Private property fund Vogue Capital Group is also a shareholder of OrangeTee Group.
Both Vogue Capital and Tokyu Livable will have a stake in the new holding company post-merger, along with Ng’s Triplestar Holdings and TH Investments. Last year, ETC expanded its presence into Johor Bahru through its joint venture company in Malaysia, Nawawi Tie, and already has offices in Penang and Thailand.
“We believe this merger will present more opportunities for us in the ASEAN region and Japan, especially through our relationship with Tokyu Livable,” says Sim.