High-growth disruptive real estate group The Agency is inching closer to becoming a national brand with shareholders giving the nod to acquire Eastern States-focused Top Level Real Estate.
The acquisition – which still requires conditions to be satisfied – will see The Agency become a national business with two prominent brans being The Agency and Sell Lease Property, which the company acquired earlier this year.
Once the Top Level deal is complete, The Agency will have 293 sales representatives across Perth, Sydney, Melbourne and the Gold Coast (across nine offices), 4216 properties under management, 1021 listings worth ~$1.2 billion and a mortgage book of $1.2 billion.
Importantly, the combined group delivered a total revenue for the first four months of CY2019 of $15.1 million which represents 52% of FY2018 revenue of $29.3 million.
Post-acquisition, The Agency remains on target for a 50% year-on-year increase in annual revenue for FY2019
Post the Top Level acquisition, the Company will have a strong and diverse footprint across key metropolitan cities across Australia, with offices in Perth, Sydney, Melbourne, Gold Coast and future plans to expand existing market presence as well as into new residential markets.
The Agency Managing Director Paul Niardone said the overwhelming support received from shareholders for the transaction shows the significance of the deal and meant the company was now a major step closer to making the transaction a reality.
“The acquisition of Top Level will further cement our position as the fastest growing disruptive real estate group in the country with the addition of a highly experienced east coast real estate sales, significant property management portfolio and extensive sales pipe-line,” he said.
The Agency also received approval for the issue of up to 28 million shares at 30c per share (post-consolidation of the Company’s issued capital) to raise $8.4 million to provide funds to progress the Top Level acquisition and expand Sell Lease Property nationally.
Shareholders also voted in favour of a consolidation of the Company’s issued capital on a 30:1 basis providing a tighter capital structure and stronger balance sheet with a $5 million reduction in Top Level debt via a debt-to-equity conversion and the election of Top Level CEO Matt Lahood as an Executive Director of The Agency.
Shares in The Agency were last trading 0.9c.