Two real estate giants, ETC (formerly known as Edmund Tie) and OrangeTee Group, have announced their plans to merge and form a new holding company. The name of the new entity has not been revealed yet, but according to Desmond Sim, CEO of ETC, it is not an acquisition, but a coming together of two like-minded companies.
Under the merger, Sim will continue to serve as the CEO of ETC, as well as the group CEO of the merged entity. Meanwhile, Justin Quek, the current CEO of OrangeTee & Tie, will take on the role of deputy group CEO of the new holding company.
Following the merger, ETC will primarily focus on consultancy and advisory services, while OrangeTee will concentrate on proptech and its real estate agency business. OrangeTee currently has a network of 2,803 salespersons registered with the Council for Estate Agencies (CEA) as of Feb 24, and the combined entity will have over 520 staff.
According to Sim, by combining their expertise, resources, and networks, the two companies can drive growth, create value for stakeholders, and achieve the necessary scale to thrive in the dynamic real estate landscape.
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This is not the first collaboration between ETC and OrangeTee. In August 2017, they formed a joint venture, merging their associates’ business under a new entity, OrangeTee & Tie. This move propelled OrangeTee & Tie to the third spot among the top three agencies and gave ETC a 20% stake in OrangeTee & Tie.
The latest merger was facilitated by Triplestar Holdings and TH Investments, both entities related to the family of Roland Ng, managing director and group CEO of Tat Hong Holdings. Triplestar and TH Investments acquired a stake in ETC in 2016 after a management buyout, and they now own 100% of the company.
This year marks ETC’s 30th anniversary, while OrangeTee Group will be celebrating its 25th anniversary. Led by the board of directors and C-suites, which includes Quek, Marcus Oh, Teo Yak Huat, and Christine Sun, OrangeTee Group is preparing to strengthen their brokerage and consultancy team with advanced proptech to deliver innovative solutions across all real estate sectors.
Some of the other stakeholders in OrangeTee Group include Tokyu Livable Inc., 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.
ETC is not new to the international market, with a presence in Malaysia and Thailand through joint ventures. The merger is expected to open up more opportunities in the ASEAN region and Japan, especially through their relationship with Tokyu Livable.
Overall, the merger between ETC and OrangeTee is a strategic move that combines their strengths to create a stronger and more diverse holding company, with the potential for growth and expansion in the future.