The Agency completes acquisition of the McGrath Rebels

The Agency completes acquisition of the McGrath Rebels
The Agency completes acquisition of the McGrath Rebels

The WA based listed property services company, The Agency has completed its drawn-out acquisition of east coast real estate firm Top Level Real Estate after acquiring all of the issued shares in Top Level.

It involved a capital raising of $8.4 million via the issue of 28 million shares at 30c per share and taking on $18.8 million of Top Level debt.

The Agency advised it now has 293 sales representatives across Perth, Sydney, Melbourne and the Gold Coast, the same figure it advised in mid-2018, after a number of quiet departures.

Its early target was to have eventually 600 sales representatives nationally. 

It has 4209 properties under management, up slightly on the 4175 as at June 30, 2018.

It currently has 1394 listings.

Its mortgage book is $1.2 billion in loans, up slightly on its $1.1 billion loan book from 2016.

The transaction sees Matt Lahood commence as an execuitve director of The Agency upon completion of acquisition.

He led the McGrath Rebels who departed the McGrath agency with the promise of very high commission payments.

It was two years ago they made the decision on tieing up with the little known ASX minnow with the backing of mortgage broker John Kolenda.

The Agency now comprises two brands, The Agency and Sell Lease Property.

   

No. of Agents

293

No. of Properties Sold

1121

Value of Properties Sold

$1.2bn

Properties under Mgmt.

4209

Listings

1394

Group Revenue

$24.5m

Source The Agency: six month to December 31 unaudited data

The Agency will be opening second Melbourne office in Hawthorn and new office in Central Coast NSW with plans to expand into Brisbane, Canberra.

The Agency managing director Paul Niardone said the overnight company-making transaction was "a significant milestone in the short history of The Agency and further cements our position as the fastest growing disruptive real estate group in the country."

“We are only a start-up that has, in a very short space of time, achieved significant growth in terms of revenue, market share and recruitment.

"Our target now is to become cashflow positive within the next 12 months while also focusing on national expansion opportunities."

The half year group revenue for the past six months was put at $24.5 million. The annual revenues sat at $29.3 million as at June 30 last year. 

Shares were trading at ¢14 before its trading halt this time last week. This morning they showed a bid of ¢15, with offer ¢28. There were no trades this morning.

 

 

Tags: 
The Agency Matt Lahood

Comments

Be the first one to comment on this article
What would you like to say about this project?