The Agency Group Australia’s (ASX:AU1) expansion into the WA real estate marketplace continues with another successful real estate firm set to join the team.
Vicus Residential – the residential sales and management division of WA based property company The Vicus Property Group – is set to join the Agency with the Agency to acquire all the issued shares of Vicus for 41.25 million shares in The Agency and a $50,000 cash payment.
Based on its current share price of 1.8c, this prices the acquisition at $792,500.
The acquisition will see The Agency’s WA operations grow by four staff and add more than 200 rental properties that span across houses, units and apartments predominantly in the inner city of Perth, increasing total property managements on The Agency’s books to approximately 700 in the state.
“This business adds to The Agency’s significant growth potential and establishes a strong presence in Inglewood, Mount Lawley and surrounding inner city suburbs, complementing our purchase last year of highly successful real estate business Beaufort Realty, The Agency Group Managing Director Paul Niardone said.
Mr Niardone said Vicus Residential was profitable, reporting EBITDA of approximately $300,000 per annum and turnover of $800,000 to $1 million per annum for FY2017 (historical and unaudited financials).
“We strongly believe inner-city suburbs will continue to attract strong buyer interest as they offer unique housing stock, excellent proximity to the city and unrivalled lifestyle choices given the stand-out restaurants, cafes, shops, schools, sporting, community and transport facilities.
We warmly welcome the Vicus Residential team to The Agency family, and look forward to working with them to support their continued growth,” he added.
According to Vicus Property Group, the decision to sell Vicus Residential was based on the board and management’s desire to focus purely on their burgeoning commercial property business.
Under the new ownership structure, Vicus Residential’s licensee Gianni Redolatti will remain as the named licensee.
Settlement is conditional upon completion of financial, legal and technical due diligence and shareholder approval for the Vicus Residential acquisition.
Today’s news comes after the company acquired highly successful Mount Lawley market leader real estate agency Beaufort Realty last year.
Shares in The Agency were last trading at 1.8c.