Upstart WA-based real-estate and financial services company The Agency (ASX:AU1) is spreading its wings across Australia, completing a long-awaited acquisition of Top Level Real Estate, the organisation operating as The Agency on Australia’s east coast.
To complete the acquisition, The Agency will also be topping up its coffers through an $8.4 million share placement as well as converting $5 million in Top Level debt into shares at a price of 1 cent per share.
The Agency has received firm commitments for the $8.4 million raise, and reports the move is strongly supported by existing and new shareholders, with non-executive director John Kolenda increasing his interests to 19.9 percent of the company.
Former McGrath real estate agency rebel Matt Lahood, who jumped ship to join the east coast operations of The Agency last year, will strengthen the consolidated entity’s board, being added as Executive Director.
Consideration for Top Level will be 550,000,000 fully paid ordinary shares at an issue price at 1 cent.
The Agency will also be conducting a 1 for 30 share consolidation to tighten its capital structure post acquisition and intends to issue approximately 13.6 million shares to current shareholders following the consolidation.
The Agency managing director Paul Niardone said the deal was a game changer for the company, cementing its position as the fastest growing real estate group in the nation.
Top Level, which has been trading as ‘The Agency’ on the east coast of Australia since launching in March last year, has established, with our support, a significant business in a short period of time, surpassing our recruitment and sales targets.
“Post the Top Level acquisition, the company will have a strong footprint in the Perth and Sydney residential property markets, with offices in Melbourne and on the Gold Coast and plans to expand into Canberra, South Australia and further expand its Western Australian options,” Mr Niardone said.
The strengthened Agency Group will be the only single owner national real estate business operating two prominent brands – The Agency and Sell Lease Property – with approximately 300 sales representatives across the country. It will also have over 4000 properties under management, listings of over 1,100 and a mortgage book of over A$1.1 billion.