DTZ looks to be reinvesting the massive proceeds from its highly lucrative investment business to buy a business with a strong track record in management and letting agency. And it also seems to be boosting its exposure to the shopping centre development market at a time when activity is at a record high.

This looks like a sound defensive move at a time when an increasing number of observers are calling the top of the investment market. When times get harder management fee income is highly desirable because it carries on regardless when deal-related fees dry up in a stagnant market.

Reportedly over 100 of Donaldsons' partners and staff hold equity in the business, so the proceeeds of the sale - which could be as much as £60m - will be distributed quite a long way down the food chain.

That's important because a number of recent mergers have been followed by a staff exodus.

While such a deal makes sound business sense it's hard not to feel at least a twinge of regret about the passing of one of the most powerful brands in the shopping centre business.

In 1964 Trevor Donaldson was in at the very genesis of shopping centres in the UK when he built the country's first open-air shopping precinct, the Fryern Arcade at Chandlers Ford in Hampshire.

But it was as an adviser, rather than as a developer, that he became most influential, working with Hammerson's founder Sydney Mason on schemes like the Liberty in Romford and Victoria Square in Southend in the 1960s and on Brent Cross in the 1970s.

All this presupposes that the deal goes through: Donaldsons has developed something of a reputation in recent years for being always the bridesmaid and never the bride, following a string of aborted mergers.

We wish the new business well.

Graham Parker, Editor

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