UGL Limited has entered into a binding agreement to sell its global property services business, DTZ to a private equity consortium comprising of TPG Capital (TPG), PAG Asia Capital (PAG) and Ontario Teachers’ Pension Plan (OTPP) for an enterprise value of $1.215 billion.

According to UGL Chairman, Trevor C. Rowe AO, the decision was made by the Board after carefully considering various options to determine the optimal corporate structure for UGL. It is the Board’s firm belief that a structural separation of DTZ and Engineering is in the best interests of shareholders, and will be beneficial for both their clients and their people.

The Board also concluded that the TPG and PAG Consortium offer to acquire DTZ was in the best interests of the Company and its shareholders, with the sale price representing a fair valuation for DTZ.

UGL Managing Director and CEO, Richard Leupen commented that UGL has, over the last sixteen years built one of the leading global property services platforms through both selective acquisitions and investing in organic growth. He adds that the sale price reflects the significant value UGL has created in building a unique platform over this time.

Following DTZ’s sale to the consortium, UGL will become a dedicated engineering, construction and maintenance services provider in Australia, New Zealand and South East Asia. The sale will also register a robust balance sheet for UGL, enabling the organisation to capitalise on various growth opportunities in their core engineering and maintenance services business.