UGL to launch spin-off of property arm

Group expected to announce split of engineering, property arms with FY results.

UGL (UGL) will move forward with plans to spin-off its DTZ property business into a new, listed entity as it looks to ensure stronger valuations for its businesses in the investment community, The Australian reports.

According to the newspaper, UGL chief executive Richard Leupen will announce the plans as part of the group's full-year profit results today.

UGL's holding of the DTZ property services unit and its engineering arm has diversified the group's earnings, however, the entire company has been weighed by the engineering arm in the past year, particularly following a pair of profit downgrades.

The Australian reports the spun-off property group would be a unique entitiy in the Australian market as most commercial real estate agents are predominately controlled by international groups listed on foreign stock exchanges.

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