On Feb 24, ETC and OrangeTee Group made a joint announcement that they would merge to form a new holding company, whose name is yet to be disclosed. According to Desmond Sim, CEO of ETC, this is not an acquisition, but a coming together of two companies with a shared vision.
Sim will serve as the group CEO of the merged entity, while Justin Quek, current CEO of OrangeTee & Tie, will be the deputy group CEO. This merger will see ETC focusing mainly on consultancy and advisory services, while OrangeTee will concentrate on proptech and its real estate agency business, which is supported by a network of 2,803 salespersons registered with the Council for Estate Agencies (CEA) as of Feb 24.
The combined company will have more than 520 employees and 2,803 salespersons. Sim believes that by combining their expertise, resources, and networks, they can achieve significant growth and create value for all stakeholders, allowing them to prosper in the ever-changing real estate industry.
This merger builds on the joint venture between the two companies in August 2017, when the former Edmund Tie and OrangeTee merged their associates’ business under a new entity, OrangeTee & Tie. This move led to a sales force of over 4,000 agents, propelling OrangeTee & Tie to become one of the top three agencies in Singapore. As part of the joint venture, the former Edmund Tie acquired a 20% stake in OrangeTee & Tie.
The latest merger was made possible by Triplestar Holdings and TH Investments, both related to the family of Roland Ng, managing director and group CEO of Tat Hong Holdings. They acquired a stake in ETC in 2016 after a management buyout. When some original shareholders, including Edmund Tie, retired, the company bought back their shares, increasing Triplestar and TH Investments’ stake to about 60%. Today, these two entities hold a 100% stake in ETC.
This year marks a significant milestone for ETC as they celebrate their 30th anniversary. In line with this, ETC has also rebranded as ETC to commemorate this special occasion.
OrangeTee Group was incorporated in 2000 and will be celebrating its 25th anniversary this year. It is an investment holding company led by a board of directors and supported by C-suites, including Quek, CEO of OrangeTee & Tie; Marcus Oh, managing director of OrangeTee Advisory; Teo Yak Huat, CFO; and Christine Sun, chief researcher & strategist. Quek believes that with a stronger brokerage and consultancy team, coupled with advanced proptech, they are equipped to deliver innovative and seamless solutions across all real estate sectors.
Some of the stakeholders in 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, a real estate business under the Tokyu Group. Private property fund Vogue Capital Group is also a shareholder of OrangeTee Group.
Both Tokyu Livable and Vogue Capital will also have a stake in the new holding company post-merger, along with Ng’s Triplestar Holdings and TH Investments. ETC has already established a presence in Malaysia through its joint venture company Nawawi Tie, and has an associate company in Thailand, Edmund Tie & Co (Thailand). Sim believes that with this merger, more opportunities can be explored in the ASEAN region and Japan, especially through their relationship with Tokyu Livable.
In conclusion, the merger between ETC and OrangeTee Group presents a promising future for both companies, allowing them to expand their capabilities and tap into new markets.