The Agency renegotiates $12.65 million Macquarie Bank debt

The Agency renegotiates $12.65 million Macquarie Bank debt
The Agency renegotiates $12.65 million Macquarie Bank debt

The emerging national estate agency The Agency has reported it expects its core business units to be profitable within the next 12 months.

The network has expanded to 300 sales representatives across Perth, Sydney, Melbourne and the Gold Coast (across nine offices, following the closure of Coogee premises).

The company now has 4209 properties under management, 1394 listings and a mortgage book of over A$1.2 billion.

The Agency East Coast recorded 402 residential sales (with a combined value of A$805 million), along with a property management portfolio in excess of 3,300 properties, having a team of 117 sales agents.

Commenting on the results, The Agency managing director Paul Niardone said with a reduced cash burn rate, the expectations are its WA operations (real estate, mortgage, and settlement businesses) will be cash flow positive from the start of the 2019.

It reported its national net revenue from continuing operations of $10,479,073 for the six-month period ending 31 December 2018, representing a 52 per cent increase on the previous comparative period 31 December 2017 revenue (HY2017: $6,877,278).

Its commissions for the six-month period totalled $7,011,868, representing a 46 per cent increase on the previous comparative period 31 December 2017 revenue (HY2017: $4,798,945).

It reported a loss before tax of $2.11 million which was lower that the prior period. (Dec 2017: $2,148,445 loss).

Some $615,000 were one-off costs associated with legal expenses and corporate advisory incurred in relation to the acquisition of Top Level Pty Ltd, the Matt Lahood lead Bondi Beach based agency. 

The reported to shareholders noted revenue and commission growth "will be maintained during the upcoming period and significantly enhanced as a result of the acquisition of Top Level Real Estate Pty Ltd which settled post 31 December on 11 January 2019."

On 17 January 2019, The Agency completed its acquisition and settlement of Top Level Pty Ltd (“Top Level”), by The Agency’s wholly-owned subsidiary Ausnet Real Estate Services Pty Ltd, after all conditions precedent to the transaction were satisfied. The total cost of the acquisition was $5,000,000.

As announced on 12 February 2018, the Company and its wholly-owned subsidiary, Ausnet Real Estate Services Pty Ltd, entered into an amended and restated option agreement with Top Level Real Estate Pty Ltd and Top Level’s majority shareholders for Ausnet to acquire all of the Top Level Shares held by the majority shareholders and offer to acquire all of the Top Level Shares held by the minority shareholders.

 The total cost of the acquisition was $5,000,000.

As part of the post-acquisition settlement process, the company has re-negotiated the existing Top Level Macquarie Bank financing, with a new debt facility executed, for a term extending from 17 January 2019 to July 2019. 

It advised the Macquarie Bank debt facilities total $12.65 million.

It reported it had also re-negotiated an extension of the repayment date on an existing $1,350,000 loan until June 2019The Agency also completed the acquisition of Vicus Residential - the residential sales and management division of The Vicus Property Group – in January 2019 with settlement of 2,666,667 shares and a $75,000 cash payment as payment for all of Vicus Residential’s issued shares.

The total acquisition cost was $875,000.

 

 

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