Takeover makes QV top dog

State-owned Quotable Value will become the country's biggest commercial property services provider with the purchase of advisory company DTZ New Zealand.

QV has announced it will merge DTZ into its existing Darroch business early in November, creating a company with an estimated turnover of nearly $70 million.

The purchase price will not be made public.

DTZ is a global real estate adviser to corporates, property companies, banks, and government organisations, employing 12,500 people in 40 countries.

In New Zealand the company employs about 130 staff.

QV is already the country's largest valuation and property information company.

QV chairman Phil Lough said DTZ was a good fit with QV's growth plans.

"This acquisition will not only provide economic benefits... it will also enable us to continue to maintain New Zealand jobs."

DTZ's main competitors include Colliers International and Bayleys.

Property Institute spokesman Ian Campbell said the acquisition gave QV a significant property management portfolio to accompany its traditional valuation and local authority ratings services.

The institute supported QV's move, he said.

But the acquisition has raised eyebrows in the industry because DTZ counts some government departments among its clients, including Transit New Zealand and the Office of Treaty Settlements. It also manages the Bank of New Zealand's property portfolio.

As a government agency QV would in effect be providing services to other government agencies in competition to the private sector.

"The Crown could decide not to offer any of its management portfolio out to tender and decide to retain it within Quotable Value," Mr Campbell said.

- © Fairfax NZ News