The DTZ saga is in desperate need of resolution. Monday’s announcement that SGP would not be proceeding with its purchase confirmed what the market had been expecting.
Tuesday’s hoisting of a for sale sign may, strictly speaking, have been a technicality. (Without the procedural announcement it would have been impossible for the firm to have private, exploratory talks with any bidders). But it was only interpreted in one way by those within and outside of the firm: DTZ is actively seeking a buyer.
EG readers told us this week that CBRE was the most likely purchaser, followed by BNP Paribas Real Estate. Neither party is a realistic bet, however. Debt and overlap dissuaded CBRE. And while SGP’s retreat may have been blamed on its partner BNP’s eurozone exposure, that won’t have been the full picture.
Acquiring any property adviser in October 2011 – let alone DTZ – looks a riskier bet than it did when the bid was mooted in the comparatively halcyon days of May.
A better fit would be Cushmans as its US muscle would complement DTZ’s strength in Asia and the Middle East. European overlap could be ignored with such a significant global prize. Again, though, don’t hold your breath.
Meanwhile, Australian service giant UGL is no longer thought to be interested, though US firms NAI Global or BGC Partners could yet surprise.
There are other options, of course. An injection of capital is not impossible, though any refinancing where SGP remains heavily involved feels less likely.
The only option ruled out by DTZ is break-up, though that of course is not always in a board’s hands.
Perhaps the most interesting party to contact Oriel Securities, DTZ’s broker, this week was Sanderson Weatherall, the 23rd biggest firm in the UK, according to EG’s Top Agents league table. By turnover it is merely a tenth of DTZ’s size. So it is a fantastically audacious move by an ambitious firm.
Now Sanderson Weatherall doesn’t stand a chance of striking a deal with DTZ. But then neither does it want to. It has offices in Leeds, Manchester, Newcastle, Teesside and London. And it wants to expand, with more people and more offices in its sights.
It wants to talk to individuals interested not just in joining the firm but in opening new offices under the Sanderson Weatherall banner. And it hopes to tap into DTZ discontent to do so.
If this firm is countenancing such thoughts you can bet others are too. And this cabal will also be looking beyond DTZ. Will anyone – from DTZ, Jones Lang LaSalle or other big boys – be persuaded to do so? Watch this space
With the mercury dropping on the market’s thermometer, Estates Gazette is launching a series of Question Time events this autumn. We are kicking off with breakfast events, sponsored by Savills and Santander, in Manchester and Birmingham, with Bristol, Glasgow and London being readied for the new year.
The North West Question Time takes place at the Lowry on 11 November with speakers including Manchester city council leader Sir Richard Leese and Allied London chief executive Mike Ingall.
The Midlands Question Time takes place on 29 November at Birmingham’s Imax Cinema. Speakers include St Modwen chief executive Bill Oliver and Birmingham city council director of planning and regeneration Waheed Nazir.
The audience will dictate the topics discussed, but the state of the economy, fragility of regional property markets and the EG/UK Regeneration Building a Better Britain campaign are bound to feature. For more information and to sign up, go to www.estatesgazette.com/questiontime
