Mark Bouris at the helm until 2019, as expansionary Yellow Brick Road acquires RESI Mortgage

Mark Bouris at the helm until 2019, as expansionary Yellow Brick Road acquires RESI Mortgage
Jonathan ChancellorDecember 7, 2020

Yellow Brick Road has announced that it will acquire the non-bank lender RESI Mortgage.

YBR will pay $36 million for the business, $28 million in cash, $5.5 million in shares and $2.5 million in deferred cash payments.

RESI foundation shareholder Peter James said it represented a "sound strategic move for the RESI business".

The Resi business would remain a separate brand and maintain its current management structure, with Angelo Malizis as the RESI CEO.

YBR executive chairman Mark Bouris said the acquisition of the 30-year old company would enhance YBR's national presence.

The company also announced that it had secured $42.05 million of commitments in a raising placement to existing shareholders and institutional clients of Bell Potter.

Existing shareholders Macquarie Bank and Nine Entertainment subsidiary subscribed to $12 million each in the placement while other institutional investors took the remaining $18.5 million.

YPR said the funds will be used to pay for the cash considerations of the Resi acquisition and also the recent Vow acquisition.

“We welcome the Resi franchisees, management and staff to the YBR group and look forward to leveraging our marketing platforms to significantly increase Resi’s lead flow as part of our combined group,” Bouris said.

“The complementary skills and relative strengths of the YBR, Vow and Resi brands and businesses will combine to provide Resi franchisees, YBR branch licensees and Vow brokers with unparalleled opportunities to build revenues and market position as we progress our strategy to be a leader in the “non-bank” sector,” he said.

Bouris has extended his consultancy agreement with YBR for another four years until 2019.

The acquisition of Resi remains subject to a general meeting of YBR shareholders expected to be convened for late August 2014.

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

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