ETC and OrangeTee Group have recently announced their merger to form a new holding company, according to a joint press release on Feb 24.
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Desmond Sim, CEO of ETC, says that the merger is not an acquisition but a collaboration of two leading companies. Sim will continue to serve as CEO of ETC and also take on the role of group CEO in the new entity. Justin Quek, current CEO of OrangeTee & Tie, will become the deputy group CEO.
After the merger, ETC will focus on consultancy and advisory services while OrangeTee will concentrate on proptech and its real estate agency business. Supported by a network of 2,803 registered salespersons with the Council for Estate Agencies (CEA), OrangeTee aims to expand its business.
The combined entity will have over 520 employees alongside the 2,803 salespersons. Sim believes that combining resources and expertise will drive significant growth and create value for stakeholders in the ever-changing real estate landscape.
This merger is a continuation of the August 2017 joint venture between the former Edmund Tie and OrangeTee, which resulted in the third-largest real estate agency in Singapore with over 4,000 agents. The former Edmund Tie acquired 20% stake in OrangeTee & Tie following the venture.
Triplestar Holdings and TH Investments, companies related to Tat Hong Holdings’ family, have acquired a majority stake in ETC after a management buyout in 2016. As some of the original shareholders retired, Triplestar and TH Investments bought back their shares, resulting in their current 100% ownership of ETC.
This year marks ETC’s 30th anniversary, and Sim believes that the merger is a significant milestone for the company. In addition, ETC has been rebranded as just “ETC” last year.
OrangeTee Group, founded in 2000, will celebrate its 25th anniversary this year. The investment holding company is led by a board of directors and supported by senior executives, including Quek, Marcus Oh, Teo Yak Huat, and Christine Sun.
With a strengthened team in both brokerage and consultancy services and advanced proptech capabilities, Quek believes that OrangeTee and Tie will be able to provide innovative solutions to its clients across all real estate sectors.
Among the stakeholders of OrangeTee Group are Tokyu Livable Inc., a subsidiary of Tokyu Fudosan Holdings and a major real estate agency in Japan, which took a 22.5% stake in the company in 2014. Private property fund Vogue Capital Group also holds a stake in OrangeTee Group.
ETC has been expanding its presence in Southeast Asia, with an office in Johor Bahru that was opened last year through its joint venture with Nawawi Tie in Malaysia. The company also has a presence in Penang and Thailand through its associate companies. Sim believes that the merger will create more opportunities for growth in the ASEAN region and Japan, especially through their partnership with Tokyu Livable.