SYDNEY-UGL Limited is pursuing a demerger to create two standalone ASX-listed companies, one focused on global property services, DTZ, and the other on engineering, construction and maintenance services in Australia, New Zealand and Asia, Engineering.

The firm's decision to pursue a demerger follows the completion of the corporate structure review in March. That review included a detailed evaluation of the issues, costs and benefits of various alternatives including maintaining the current corporate structure, industry opportunity, the company's M&A strategy and a structural separation of DTZ and Engineering.

“We believe a demerger will enhance shareholder value over the short and long term and prove beneficial to our clients and our people,” said UGL chairman Trevor Rowe. “Over the past decade, UGL has successfully grown its property services and engineering businesses to become sizeable businesses which are leaders in their respective markets.