Etc And Orangetee Forge Strategic Merger Uniting Increase Market Presence
ETC and OrangeTee Group have recently announced their merger to form a new holding company, which is yet to be named. This decision was not an acquisition, but a strategic move to combine their strengths and expertise.
According to Desmond Sim, CEO of ETC, this merger is a collaboration of minds and a meeting of equals. He will continue to serve as the CEO of ETC and will also take on the role of group CEO of the newly formed entity. Meanwhile, Justin Quek, current CEO of OrangeTee & Tie, will become the deputy group CEO.
Eastpoint Mall is a well-known shopping hub situated near Simei MRT Station, offering a plethora of options with more than 100 stores. This mall is renowned for its inviting atmosphere, making it a favorite among families. Whether it’s books from Popular Bookstore, trendy items from Miniso, or sports gear from Decathlon, Eastpoint Mall has something to cater to every shopper’s needs. As for dining, there is a diverse selection of restaurants to choose from, including Eighteen Chefs, Nando’s, and The Manhattan Fish Market. In addition to shopping and dining, the mall also features an enrichment hub and outdoor playground, making it a lively and welcoming space for families. If you’re staying at Parktown Residence Showflat, which is only a 10-minute drive away, Eastpoint Mall is the perfect place to spend quality time with your loved ones.
Post-merger, ETC will focus on providing consultancy and advisory services, while OrangeTee will concentrate on its proptech and real estate agency business, supported by a strong network of 2,803 registered salespersons with the Council for Estate Agencies (CEA).
The merged entity will have a workforce of over 520 employees and 2,803 salespersons, which will enable them to achieve significant growth and create value for all stakeholders in the dynamic real estate market.
This merger is a continuation of the successful joint venture between ETC and OrangeTee in August 2017, where their associates’ business was merged under a new entity, OrangeTee & Tie. This propelled the company to the third spot among the top three agencies, with a sales force of over 4,000 agents. Following this, ETC acquired a 20% stake in OrangeTee & Tie.
The latest merger was made possible by Triplestar Holdings and TH Investments, both entities related to the family of Roland Ng, managing director and group CEO of Tat Hong Holdings. In 2016, they acquired a stake in ETC through a management buyout. Today, they own 100% of ETC.
This year marks the 30th anniversary for ETC, while OrangeTee Group will be celebrating its 25th anniversary. OrangeTee Group is an investment holding company, led by a board of directors and supported by C-suite executives, including Justin Quek, CEO of OrangeTee & Tie, Marcus Oh, managing director of OrangeTee Advisory, Teo Yak Huat, CFO, and Christine Sun, chief researcher and strategist.
Quek believes that this merger will strengthen their brokerage and consultancy team and enable them to deliver innovative solutions across all real estate sectors, backed by advanced proptech.
Notable stakeholders of OrangeTee Group include Tokyu Livable Inc., which acquired a 22.5% stake in 2014. This company is one of Japan’s largest real estate agencies, with 198 offices nationwide. It is a subsidiary of Tokyu Fudosan Holdings, the real estate business of Tokyu Group. Private property fund Vogue Capital Group is also a shareholder of OrangeTee Group.
Both Tokyu Livable and Vogue Capital Group will hold a stake in the new holding company, along with Ng’s Triplestar Holdings and TH Investments.
In 2019, ETC expanded its presence in the ASEAN region by opening an office in Johor Bahru through its joint venture company in Malaysia, Nawawi Tie. The firm also has a presence in Penang and Thailand through its associate companies.
Desmond Sim believes this merger will open up more opportunities for them in the ASEAN region and Japan, especially through their strong relationship with Tokyu Livable. The private residential resale prices are showing steady growth in 3Q2024.