RPT-UPDATE 1-TPG agrees to buy Australia property services firm DTZ for $1.1 bln-source

Sun Jun 15, 2014 5:58pm EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

(Repeats story first published on Friday; no change to text)

* TPG consortium includes Ontario Teachers' Pension Plan and PAG

* DTZ's revenue rose 18 percent in six months ended December

* UGL shares are down 3.8 pct so far this year, vs 4.8 pct fall in benchmark index

By Stephen Aldred

HONG KONG, June 13 (Reuters) - A TPG Capital Management-led consortium has agreed to buy the property arm of Australian engineering services firm UGL Ltd for A$1.215 billion ($1.14 billion), a source told Reuters on Friday.

UGL put the unit DTZ, a real estate services company, for sale to cut debt as its main engineering services division faces declining revenues due to a slowdown in the Australian mining sector.

A deal is expected to be signed as early as Friday, bringing to a close a year-long sale process that has attracted interest from a number of private equity bidders including U.S. buyout firm Warburg Pincus.

The sale also underscores the return of strong buyouts market in Asia, spurred by easy credit markets and capital flowing into the region's private equity firms.   Continued...