Etc And Orangetee Forge Strategic Merger Uniting Increase Market Presence
ETC and OrangeTee Group announced on Feb 24 that they will be merging to form a new holding company. This partnership, which is not an acquisition, will see the two companies combining their expertise to create a stronger entity.
Desmond Sim, CEO of ETC, clarifies that this is not a takeover but a union of minds. In addition to his role as CEO of ETC, Sim will take on the position of group CEO for the merged company. Meanwhile, Justin Quek, current CEO of OrangeTee & Tie, will serve as deputy group CEO.
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Following the merger, ETC will focus on consultancy and advisory services while OrangeTee will concentrate on proptech and its real estate agency business. The two companies have a network of 2,803 salespersons registered with the Council for Estate Agencies (CEA) as of Feb 24.
The merged company will have over 520 staff and 2,803 salespersons. The combination of resources, expertise, and networks is expected to drive growth and create value for all stakeholders, enabling the company to thrive in the constantly evolving real estate landscape.
This merger is the latest development in the partnership between ETC and OrangeTee. In August 2017, the two companies merged their associates’ business under a new entity, OrangeTee & Tie. The combined entity currently holds the third spot among the top three agencies with a sales force of over 4,000 agents. In 2017, the former Edmund Tie also took a 20% stake in OrangeTee & Tie.
This recent merger was made possible by the support of Triplestar Holdings and TH Investments, both of which are related to the family of Roland Ng, managing director and group CEO of Tat Hong Holdings. These entities acquired a stake in ETC in 2016 following a management buyout. As some of the original shareholders retired, their shares were bought back by the company, increasing Triplestar and TH Investments’ stake to approximately 60%. Today, Triplestar Holdings and TH Investments have a 100% stake in ETC.
ETC is also celebrating its 30th anniversary this year, marking a significant milestone for the company. Meanwhile, OrangeTee Group, an investment holding company, was incorporated in 2000 and is celebrating its 25th anniversary this year. The company is led by the board of directors with support from its C-suite team, including Quek, Marcus Oh, Teo Yak Huat, and Christine Sun.
Quek believes that with a strengthened brokerage and consultancy team and advanced proptech, the company is well-positioned to deliver innovative solutions across all real estate sectors. The stakeholders of OrangeTee Group include Tokyu Livable Inc., which acquired a 22.5% stake in the company in 2014. Tokyu Livable is one of Japan’s largest real estate agencies, with 198 offices nationwide, and is a subsidiary of Tokyu Fudosan Holdings, the real estate business of the conglomerate Tokyu Group.
Private property fund Vogue Capital Group is also a shareholder in OrangeTee Group. Both Vogue Capital and Tokyu Livable will retain their stake in the new holding company. ETC also has a presence in Malaysia and Thailand, with an office in Johor Bahru through its joint venture company Nawawi Tie and an associate in Thailand, Edmund Tie & Co (Thailand). Sim believes that this merger will open up more opportunities for the company in the ASEAN region and Japan, particularly through its relationship with Tokyu Livable.