TPG Capital, a private equity and venture capital firm, along with a private investment consortium of PAG Asia Capital and Ontario Teachers’ Pension Plan has completed the purchase of property services company DTZ. The deal is estimated at around $1 billion.
In India, DTZ provides investors end-to-end property solutions. DTZ in India has over 270 employees and operates across five offices.
Earlier, company executives had reportedly said that global investors had got interested in the Indian real estate market with the new government at the Centre, and its realty-friendly policy announcements.
DTZ’s range of property services is comprehensive and comprises investment advisory services, leasing, marketing and sale of property across commercial, retail, hospitality and industrial sectors, as well as project management expertise for all types of property.
The purchase of Australian engineering firm UGL Ltd's DTZ property arm by the private consortium would help catapult TPG to the top slot as one of the world's largest property companies.
In September this year, DTZ announced that it would buy US property services firm Cassidy Turley. The merger of Cassidy Turley into DTZ is set to form a company with revenues of $2.9 billion, noted a statement from Cassidy Turley.
DTZ confirmed the close of its sale in a statement, and termed it a new beginning as an independent, privately owned global property services company.
DTZ said it would continue to operate under the DTZ brand and its seasoned executive leadership team. Tod Lickerman is to continue in his current role as Global Chief Executive Officer of DTZ, and report to Brett White, former Chief Executive Officer of the CBRE Group, who is to begin serving as full time Executive Chairman of the new company in March 2015.
``DTZ now has the independent governance, strong capital base and speed-to-market of a private company, which will allow us to grow and serve our clients’ ever changing needs,'' said Tod Lickerman, in the statement.
He added that DTZ's new capital structure and strong financial backers positions DTZ to make continued investments to expand its capabilities, and offer clients a complete suite of services in every major market around the world.
In September, an affiliate of DTZ Investment Holdings, backed by the TPG and PAG Consortium had announced it had entered into an agreement to acquire Cassidy Turley, with plans to combine it with the DTZ business during 2015. The acquisition of Cassidy Turley is expected to be completed by December 31, 2014.
Speaking on behalf of the TPG and PAG Consortium, TPG’s Ben Gray said in the statement, ``The combination of DTZ’s strong businesses in Asia and Europe, its existing businesses in the United States and Cassidy Turley’s market leading business in the United States, will create a global, full service property services company that will be top 3 in the sector.''