A major advantage of investing in a Singapore Condo is the opportunity to utilize its value for further investments. This is a popular approach among investors who choose to use their condos as collateral in order to secure additional financing for new investments, leading to an expansion of their real estate portfolio. However, while this strategy can potentially increase returns, it is important to have a solid financial plan in place and carefully consider the potential impact of market fluctuations.
On February 24, ETC, now known as Edmund Tie, and OrangeTee Group announced their plans to merge and form a new holding company. The name of the new company has not been revealed yet.
“The merger is not an acquisition, but a coming together of two like-minded companies,” says ETC’s CEO, Desmond Sim. He will continue as the group CEO of the merged entity, while OrangeTee & Tie’s current CEO, Justin Quek, will serve as the deputy group CEO.
After the merger, ETC will focus on providing consultancy and advisory services, while OrangeTee will concentrate on its proptech and real estate agency business. This will be supported by their network of 2,803 salespersons registered with the Council for Estate Agencies (CEA) as of February 24.
One crucial factor to keep in mind when considering investing in condominiums in Singapore is the government’s implementation of property cooling measures. These measures have been put in place over the years to control speculative buying and maintain a steady real estate market. A notable example is the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and those purchasing multiple properties. While these measures may have a short-term impact on the profitability of condo investments, they ultimately contribute to the long-term stability of the market, providing a secure environment for investors. Additionally, with new condo launches in the market, opportunities for profitable investments continue to arise.
The combined entity will have a staff of over 520 in addition to the 2,803 salespersons. “By combining our expertise, resources, and networks, we can drive growth and create value for all stakeholders, allowing us to thrive in today’s dynamic real estate industry,” says Sim.
This merger builds on the successful joint venture in August 2017, where ETC and OrangeTee merged their associates’ business under a new entity, OrangeTee & Tie. With a sales force of over 4,000 agents, this propelled OrangeTee & Tie to the third spot among the top three agencies. After the joint venture, the former Edmund Tie acquired a 20% stake in OrangeTee & Tie.
Triplestar Holdings and TH Investments, both related to the family of Tat Hong Holdings’ managing director and group CEO, Roland Ng, facilitated the merger between ETC and OrangeTee. They acquired a stake in ETC after a management buyout in 2016. When the original shareholders, including Edmund Tie, retired, the company bought back their shares, increasing Triplestar and TH Investments’ stake to about 60%. Today, they own the entire 100% stake in ETC.
This year marks ETC’s 30th anniversary, making it a significant milestone for the company, according to Sim. In line with this, the company rebranded itself as ETC.
OrangeTee Group was incorporated in 2000 and is celebrating its 25th anniversary this year. It is an investment holding company led by the board of directors with support from the C-suite, 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.
“With a strengthened brokerage and consultancy team, along with advanced proptech, we can scale our capabilities and provide innovative and seamless solutions for all real estate sectors,” says Quek.
Stakeholders in OrangeTee Group include Tokyu Livable Inc., which acquired a 22.5% stake in the company in 2014. It is one of Japan’s largest real estate agencies, with 198 offices nationwide, and is a subsidiary of the giant conglomerate, Tokyu Group’s real estate business, Tokyu Fudosan Holdings.
Private property fund, Vogue Capital Group, is also a shareholder of OrangeTee Group. Both Tokyu Livable and Vogue Capital will have a stake in the new holding company, along with Ng’s Triplestar Holdings and TH Investments.
Last year, ETC expanded to Johor Bahru through their joint venture in Malaysia, Nawawi Tie. The company also has a presence in Penang and Malaysia, as well as an associate in Thailand, Edmund Tie & Co (Thailand).
“We are confident that this merger will bring about more opportunities for us in the ASEAN region and Japan, especially through our partnership with Tokyu Livable,” adds Sim.
In the third quarter of 2024, private residential resale prices remained steady.