iBuyNew looks west for growth, buys Perth-based real estate business
Online property marketplace iBuyNew Group Limited has expanded into Western Australia by acquiring assets from Perth-based real estate project marketing business Indo-Pacific Group Pty Ltd for $625,000.
The company said it had entered into an Asset Sale Agreement with IPG, owned by the Clough family’s investment arm McRae Investments.
IPG operates Indo-Pacific Property and focuses on new property sales and property management throughout Australia.
The acquisition will allow IBN to expand into property management and grow its national footprint.
IPG has sold more than 300 new properties since April 2015 across Australia with a total value of $250 million and more than $6 million in commissions.
The deal creates a combined gross future receivables book of $6.58 million, and will be accretive to IBN’s revenue and earnings.
As part of the deal, IBN will also pay the vendors 50% of the commissions received by IBN from the future commissions receivable book in excess of $250,000.
As part of the transaction, executive chairman of IPG and McRae Investments, Stephen Quantrill, will join the IBN board, while McRae Investments will take a 10 percent stake in the company.
Assets purchased from IPG include a $2.6 million future commissions receivable book, a property management business and rent roll and all associated brand and intellectual property.
iBuyNew CEO Alex Caraco said the company was looking to acquire strategic-fit assets that “will work well within our network and capabilities”.
Caraco took over as CEO from founder Mark Mendel earlier this year and said the company wanted to expand its presence with plans to install sales teams in all mainland state capitals as well as on the Gold Coast.
Last year, it acquired Melbourne-based property research advisers Nyko Property Pty Ltd.
“I also feel the WA market is at a turning point and provides great real estate value and the mining industry is now beginning to slowly recover,” said Caraco.
He said it was the right time to invest in the west.
Quantrill said the deal would provide the platform to continue growing the Indo-Pacific Property operations and brands.