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.