by Shane Henson — June 20, 2014—International engineering and property services company UGL Limited has just announced the decision to sell its global property services business, DTZ, to a consortium comprising TPG Capital, PAG Asia Capital, and Ontario Teachers’ Pension Plan (together TPG and PAG Consortium).
DTZ is currently one of the world’s largest property services companies, encompassing industry-leading advisory, brokerage, and management solutions for occupiers and investors worldwide. Despite the unit’s success, UGL executives decided selling the DTZ would be a positive, strategic move.
“Over the past 18 months, the board has carefully evaluated various options to determine the optimal corporate structure for UGL, recognizing that UGL is comprised of two distinct and sizeable businesses which operate in different markets, with different geographic focuses, and strategic requirements,” said UGL Chairman Trevor C. Rowe. “The board continues to believe a structural separation of DTZ and engineering is in the best interests of shareholders, and will be beneficial for both our clients and our people.”
According to Rowe, the board also believes the TPG and PAG Consortium are best placed to support the strong future growth potential of DTZ as it becomes one of the dominant global property services players, and will ensure that the long-term interests of its current clients and staff people are maximized.
Following the sale of DTZ, UGL will be a dedicated engineering, construction, and maintenance services provider in Australia, New Zealand, and South East Asia. UGL will maintain a diversified end market exposure across rail, infrastructure, and resources projects, balanced by a leading maintenance services capability delivering a material recurring revenue base. On a standalone basis, UGL will employ 6,650 people.
TPG Capital is a leading global private investment firm founded in 1992. PAG Asia Capital is one of the region’s largest Asia-focused alternative investment managers with funds under management across private equity, real estate, and absolute return strategies. Ontario Teachers’ Pension Plan is one of the largest and most successful institutional investment management organizations in the world.
