The Agency Group Australia has signed a formal agreement to acquire Sell Lease Property and real estate assets from ServTech Global Holdings in a deal that will see the creation of dominant real estate agency in the WA market.
In December, the ASX-listed real estate agent (ASX : AU1) revealed it was running the ruler over ServTech assets: Sell Lease Property (real estate agency), Complete Settlements (conveyancy business) and Value Finance (mortgage broking business).
Due diligence of the three subsidiaries is now complete with the deal now only waiting on the issue of WA real estate agency licence from the government which is expected to take place shortly, the Agency revealed today.
Since the proposed acquisition was announced, the bulk of Sell Lease Property agents have signed new employment contracts with The Agency with 93 in WA, 9 in QLD and 8 in Victoria.
In WA where both brands have largest footprint, The Agency and Sell Lease Property have dominated sales rankings.
In January, Sell Lease Property was top office for listings sold (64) with The Agency Group second (61 listings sold) – with next best having 30 listings sold.
The Agency Group ranked number one for value of sales ($37 million), with Sell Lease Property second ($25 million). Combined, the two groups sold 125 properties, which was ranked fourth amongst real estate groups – with established company Harcourts, ranked third, selling 126 properties.
These are two strong brands, that in a short period of time, have risen to dominant positions in the WA real estate market,” said The Agency Group MD, Mr Paul Niardone.
“Both brands have experienced stunning results, which we plan to replicate as we roll both brands out on a national scale,” he added.
The Agency believes the acquisition will add significant revenue to its existing infrastructure and operations, with rationalisation and infrastructure/operational efficiency savings already identified across the businesses to be acquired.
Sell Lease Property will remain as a standalone business, while Complete Settlements Pty Ltd and Value Finance Pty Ltd to merge with the existing conveyancing and mortgage broking businesses of the company.
Today’s news comes after The Agency exercised its option to acquire fast growing east coast focused real estate firm Top Level Real Estate, which is managed by high-profile ex-McGrath Real Estate executives.
Shares in The Agency were trading Thursday afternoon at 2c.