DTZ: regions showing signs of improvement

Australian property-to-engineering group UGL said its UK surveying business was enjoying aggressive organic growth on the back of a recovering economy as it reported half-year results.

UGL said its property revenues increased 36% in the final six months of 2012 to A$920m while earnings before interest and taxes rose 33% to A$45.8m. The group's property order book at the end of 2012 stood at A$3.5bn.

Mike Mitchell, DTZ's managing director of the UK regions outside London, based in Manchester, said: "The UK regions outside London are showing the first signs of improvements and have contributed positively to the groups 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 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.

"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."