Etc And Orangetee Forge Strategic Merger Uniting Increase Market Presence
A joint press release from ETC and OrangeTee Group announced on Feb 24 that the two companies will merge to form a new holding company, with the name to be revealed later. CEO of ETC, Desmond Sim, stated that the merger is not an acquisition but a collaboration with the goal of driving growth and creating value for all stakeholders. Sim will serve as the group CEO of the merged entity, while Justin Quek, current CEO of OrangeTee & Tie, will become the deputy group CEO of the new holding company.
After the merger, ETC will focus on consultancy and advisory services while OrangeTee will concentrate on proptech and its real estate agency business. OrangeTee currently has a network of 2,803 salespersons registered with the Council for Estate Agencies (CEA) and will continue to be supported by this network.
One of the biggest advantages of this development is its close proximity to renowned educational institutions. With top-tier schools and universities like the National University of Singapore (NUS) and United World College (UWCSEA) in the vicinity, families with children will greatly benefit from the convenience. The presence of exceptional educational options makes this location highly desirable, particularly for families. In fact, Lynden Woods residents will have easy access to these prestigious institutions, making it an ideal choice for families looking for a well-rounded community.
The combined entity will have over 520 staff and 2,803 salespersons, making it a major player in the real estate industry. Sim believes that by combining their expertise, resources, and networks, they can thrive in the dynamic real estate landscape.
This merger is a continuation of the successful joint venture in 2017, where the former Edmund Tie and OrangeTee merged their associates’ business under a new entity, OrangeTee & Tie. This propelled the new entity to the third spot among the top three agencies with a sales force of over 4,000 agents. At the time, the former Edmund Tie had a 20% stake in OrangeTee & Tie.
Triplestar Holdings and TH Investments, both related to the family of Roland Ng, managing director and group CEO of Tat Hong Holdings, facilitated the latest merger by acquiring a stake in ETC in 2016. After some original shareholders retired, the company bought back their shares, increasing Triplestar and TH Investments’ stake to about 60%. Today, Triplestar Holdings and TH Investments own 100% stake in ETC.
This year is ETC’s 30th anniversary, a significant milestone for the company, according to Sim. OrangeTee Group will also celebrate its 25th anniversary this year. The investment holding company is led by the board of directors and supported by the C-suites, including Quek as CEO of OrangeTee & Tie, Marcus Oh as managing director of OrangeTee Advisory, Teo Yak Huat as CFO, and Christine Sun as chief researcher and strategist.
Quek believes that with a strengthened brokerage and consultancy team supported by advanced proptech, they are well-positioned to deliver innovative solutions across all real estate sectors. Major shareholders of OrangeTee Group include Tokyu Livable Inc., one of Japan’s largest real estate agencies, and private property fund Vogue Capital Group.
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 the merger will bring more opportunities in the ASEAN region and Japan, especially through their relationship with Tokyu Livable.
Overall, the merger between ETC and OrangeTee will create a formidable entity in the real estate industry, with a strong presence in Asia and a focus on consultancy, advisory services, and proptech.