Regional market improving, says DTZ
CORPORATE acquisition work more than doubled at property agent DTZ’s Manchester office last year.
On the back of half-year figures from its Australian parent UGL, DTZ said the property market in the regions was starting to show “the first signs of improvement”, contributing positively to group figures.
Sydney-based UGL said it made operating revenue of £1.4bn in the six months to the end of December.
Net profit after tax fell from £37.3m to £17m due to a £16.8m charge associated with restructuring and the rebranding of DTZ which it bought in December 2011.
Mike Mitchell, managing director for the regions outside London, said: “The UK regions outside London are showing the first signs of improvements and have contributed positively to the group’s half year results. DTZ’s expanded global platform has already brought benefits to the regions and has bolstered our offer to both the corporate and public sector.
“These include: DTZ’s re-appointment by the Government Procurement Service (GPS) to the £120m Estates Professional Services Framework after a lengthy procurement process. The previous contract, formerly known as the OGC framework, yields several millions of pounds of work each year to the firm mainly in the regions; and global acquisition mandates have resulted in a 250% increase in corporate acquisition work in Manchester alone in 2012, and DTZ is advising clients on 27 acquisitions totalling 750,000 sq ft, all of which will deliver during 2013.
He added: “While capital markets remain subdued recent research by DTZ shows an increasing institutional interest in the regions as prices in London continue to rise. Many regional investment markets are rated as ‘hot’ as returns from government securities and cash continue to fall.”
