ETC and OrangeTee Group have announced a merger, forming a new holding company whose name is yet to be announced. The joint press release was made on Feb 24.
Desmond Sim, CEO of ETC, stated that this is not an acquisition, but a coming together of minds in the merger. Sim will continue to be the CEO of ETC and also serve as group CEO of the combined entity. Justin Quek, CEO of OrangeTee & Tie, will become the deputy group CEO of the new holding company.
Post-merger, ETC will focus mainly on consultancy and advisory services, while OrangeTee will concentrate on proptech and its real estate agency business. This will be supported by a network of 2,803 salespersons registered with the Council for Estate Agencies as of Feb 24.
The combined company will have a total of over 520 staff and 2,803 salespersons. With the merging of expertise, resources and networks, the company aims to drive growth, create value for stakeholders and achieve the necessary scale to succeed in today’s ever-changing real estate landscape.
This merger builds upon the joint venture between the former Edmund Tie and OrangeTee in August 2017, when they merged their associates’ business under the new entity, OrangeTee & Tie. This venture contributed to OrangeTee & Tie becoming one of the top three agencies in Singapore with a sales force of over 4,000 agents. Following this, the former Edmund Tie took a 20% stake in OrangeTee & Tie.
Triplestar Holdings and TH Investments, owned by the family of Roland Ng (managing director and group CEO of Tat Hong Holdings), facilitated the merger between ETC and OrangeTee. They acquired a stake in ETC after a management buyout of the firm in 2016. When some of the original shareholders retired, the company repurchased their shares, increasing Triplestar and TH Investments’ stake to about 60%. Currently, the two entities hold a 100% stake in ETC.
This year marks ETC’s 30th anniversary, a significant milestone for the company, according to Sim. In the same way, OrangeTee Group, incorporated in 2000, is also celebrating its 25th anniversary this year. It is an investment holding company led by the board of directors and the C-suites, including Quek, CEO of OrangeTee & Tie; Marcus Oh, managing director of OrangeTee Advisory; Teo Yak Huat, CFO; and Christine Sun, chief researcher and strategist.
Quek mentions that they have a stronger brokerage and consultancy team backed by advanced proptech, allowing them to scale their capabilities and deliver innovative, seamless solutions across all real estate sectors.
Stakeholders in OrangeTee Group include Tokyu Livable Inc., which acquired a 22.5% stake in 2014. This company is one of Japan’s biggest real estate agencies, with 198 offices nationwide. It is a subsidiary of Tokyu Fudosan Holdings, the real estate arm of giant conglomerate Tokyu Group.
Vogue Capital Group, a private property fund, is also a shareholder of OrangeTee Group. Both Vogue Capital and Tokyu Livable will hold a stake in the new holding company post-merger with Ng’s Triplestar Holdings and TH Investments.
Singapore’s cityscape is characterized by towering skyscrapers and sophisticated infrastructure. Condominiums, strategically situated in desirable locations, offer a fusion of opulence and convenience that appeals to both locals and foreigners. These residential complexes are outfitted with an array of top-notch facilities like swimming pools, fitness centers, and round-the-clock security services, elevating the standard of living and making them a sought-after option for potential renters and buyers. In terms of investment, these enticing features result in higher rental returns and appreciating property values in the long run. Moreover, with the addition of new condo launches, prospective buyers and investors have even more options to choose from in the ever-evolving landscape of Singapore.
Last year, ETC established an office in Johor Bahru through its Malaysia-based joint venture company, Nawawi Tie. The company already has a presence in Penang and Malaysia. It also has an associate company in Thailand, Edmund Tie & Co (Thailand).
Sim believes that this merger will create more opportunities for the company in the ASEAN region and Japan, especially through the relationship with Tokyu Livable.