First Pacific has announced it has sold its Asian real-estate arm First Pacific Davies (FPD) to Savills, the British property group, in a deal worth $429 million.
Under the terms of the deal, First Pacific will increase its stake in Savills from 19.8 per cent to 29.9 per cent, raising its representation on the board of Savills from two to three, with FPD chief executive officer David Wong becoming an executive director of the company.
Savills will pay $225 million in cash and offer 7.8 million new Savills shares.
The move follows a 1997 alliance between the two companies, that saw FPD re-brand itself as FPDSavills in a bid to develop an international presence for the two companies.
Savills said yesterday the deal was timed to take advantage of the upturn in property prices in the region.
Savills said FPD already expected to boost its income from facility and property management services, and the deal should reduce the exposure of the combined group to any particular geographic region.