McGrath tipped for inner Melbourne agency acquisition before November float

McGrath tipped for inner Melbourne agency acquisition before November float
McGrath tipped for inner Melbourne agency acquisition before November float

McGrath Estate Agents hopes to penetrate the Melbourne market ahead of its mooted $200 million initial public offering in spring this year.

The Australian Financial Review's Street Talk column -which has regularly had the inside word - reports John McGrath is looking at the foray by acquiring a Melbourne agency business with earnings of $5 to $10 million before the possible float.

It added that McGrath would be unlikely to pay more than 4 to 5 times earnings and does not need a deal.

Additionally the agency was tipped to open four to six new franchises in inner-Melbourne suburbs.

"McGrath's entry into Victoria is significant, given some of the bigger national chains have struggled to replicate their success in NSW and Queensland in Melbourne, which is dominated by smaller, independent real estate businesses," the AFR noted.

The company also has aspirations of entering Western Australia and New Zealand by 2017.

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of our authors. Jonathan has been writing about property since the early 1980s and is editor-at-large of Property Observer.

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Mcgrath Float

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