Seven executives, including three directors, of DTZ, the commercial arm of the Sherry FitzGerald Group, have resigned just a month after a failed management buyout (MBO).
On Monday, the head of the company's office division, Mr Declan O'Reilly, submitted his resignation and yesterday two other directors, Mr James Meagher and Mr Adrian Trueick, who both handled property investments, also announced that they were leaving the company.
They were joined by associate director Ms Deirdre Hayes and three other staff in the office letting section.
The breakaway group is expected to set up a rival estate agency specialising in the commercial property market.
The departures are not entirely unexpected because only last month six directors of DTZ initiated an MBO, apparently offering €3 million for 80 per cent of the commercial business. The remaining 20 per cent stake is held by DTZ in London.
The Sherry FitzGerald Group is believed to have sought around €5 million for the majority stake and, when it failed to reach a compromise, it offered the six directors the option of acquiring shareholdings in the company.
The invitation was apparently turned down by some directors who argued that the real value of the company was based on their continued service and their ability to bring in new business.
The same directors had already declined to repurchase shares in the overall group after it delisted from the stock exchange in May 2003.
That MBO, led by managing director Mr Mark FitzGerald, put a value on the group of around €25.8 million.
About 46 per cent of the shareholding in the group is held by Mr FitzGerald.
Mr Walter Coakley, a former AIB executive who is now managing director of Sherry FitzGerald Capital, is also a large shareholder, along with Mr Pat Ridge, a former financial director with Green Isle Foods. Nine other executives of the group are also shareholders.
The troubles within DTZ surfaced more than a month ago when the managing director, Mr Seán McCormack, left the company to set up his own business.
Mr FitzGerald took over the management of the company, where there are still three other directors: Mr Gordon Gill, Mr Peter Lynch and Mr Peter Waller.
The company, which employs more than 50 people, is expected to announce a reallocation of roles next week and advertise for replacement staff.
DTZ had a turnover last year of €6.5 million compared to almost €60 million by the entire group.
Sherry FitzGerald made an important breakthrough in the commercial market when it linked up with DTZ about six years ago.
It captured a significant share of the lucrative office letting market largely because of Mr O'Reilly's efforts.
Mr Meagher, who had worked for the company for about 17 years, spearheaded the development of its investment portfolio in the UK in recent years.
Mr Trueick, who like Mr O'Reilly joined the company about eight years ago, recently advised partners in solicitors McCann FitzGerald, who are set to net up to €35 million from the sale and leaseback of their planned HQ in the Grand Canal docks area.
Mr Trueick is less likely to want to recall the sale he handled for AIB of its treasury headquarters in Dublin's IFSC.
The bank valued the building at €90 million but when the Minister for Finance unexpectedly closed off tax loopholes after Mr Trueick launched the marketing campaign, the bank had to settle for a selling price of €78 million.
