The Agency Group Australia’s goal to be a national leader in real estate market is gathering momentum with the company is running the ruler over further acquisitions as it seeks to bed down its buy-up of high-flying east coast real estate firm Top Level Real Estate.
In an update to the market, the ASX-listed company said it attracted a number of enquiries from real estate businesses wishing to merge into the group.
“We are evaluating these opportunities from both a strategic perspective and contribution to EBITDA,” the company’s managing director Paul Nirdone said.
Meanwhile, The Agency is focusing its attention on bedding down a capital raising to fund its acquisition of Top Level after successfully integrating Sell Lease Property – which it acquired in February – and the 90 agents who have signed on to The Agency.
The SLP deal has resulted in The Agency becoming the only national real estate company to have two national brands in the Australian market – replicating a strategy that has proven very effective in both the US and UK real estate markets.
In its first month on The Agency’s books, SLP has recorded 55 unconditional sales and three settlements for March 2018.
Its strong results are reflected in numbers supplied by Real Institute of Western Australia which ranked The Agency and SLP 1 and respectively in terms of top office in the state for sales. (The Agency – 64 sales valued at $44.9 million, SLP – 55 sales valued at $28.5 million).
This acquisition further supports The Agency’s execution capability and the market disruption this model has over traditional real estate models, Mr Niardone said.
“The unique point of difference has been confirmed by the large percentage of SLP agents that have remained with the group following its acquisition and the other big-name agents that have recently joined The Agency.”
The company also released its results for the year-to-date March 2018 which has revealed revenue for the WA real estate business of $6.5 million which is on track for 100% year-on-year growth, while The Agency Group WA delivered $10.1 million revenue for the nine-month period.
Top Level has shown its potential to significantly add to The Agency’s bottom line, when merged, delivering revenue since it was launch in April 2017 of $10.2 million, recruitment of 90 agents, 380 settlements and 3381 properties under management.
The Agency is currently finalising a Notice of Meeting for shareholders to an EGM at which they will vote on the acquisition of Top Level. The date for this meeting is yet to be finalised.
Today’s news comes after The Agency acquired all of the issued shares of Vicus Residential Pty Ltd – the residential sales and management division of WA-based property company The Vicus Property Group.
Shares in The Agency were trading today at 1.7c.
