Property powerhouse

In a move which will significantly boost its European services, global property advisor DTZ has acquired privately owned property developer Donaldsons for Ł39.8 (zů.220.12) million, plus a deferred consideration of up to Ł8.8 (zů.48.67) million. According to DTZ, the two will create a formidable force in the industry, ranking in the top two property-consultancy firms in the UK, and the top three in Europe.

"While Donaldsons will provide opportunities to develop the combined business across all sectors of the market, the strength that [it] brings in the retail segment is of significant importance to us within the UK and continental Europe," said Mark Struckett, DTZ's CEO.

Following the merger, Donaldsons will be able to offer shopping-center management services, while its clients will have access to DTZ's global property services. Donaldsons chairman Martyn Chase described the move as a "tremendous opportunity" for both businesses and their clients.

DTZ employs almost 12,000 worldwide, while the London-based Donaldsons has 690 staff in the UK and 220 in continental Europe - 90 of which are employed in its Polish branch, Donaldsons Polska. Donaldsons will adopt the DTZ brand this autumn and the merged firm's combined operations in Poland will employ over 160 people.

Donaldsons reported a Ł62.9 (zů.347.85) million profit before tax for the fiscal year ending June 30, 2006. Once the merger is finalized, DTZ's turnover in Europe, the Middle East and Africa will grow to ?600 (zů.2,253) million, while its global turnover will reach almost ?1.1 (zů.4.13) billion.

Greg McNevin