ASX-listed real estate industry disruptor The Agency Group has completed its acquisition of blue-chip East Coast real estate outfit Top Level Real Estate, which has been operating under a license agreement as The Agency East Coast.
The Agency Group has also raised $8.4 million, through issuing 28 million shares at 30c per share.
The combined entity immediately becomes one of the nation’s fastest growing national real estate businesses.
It is the only single-owner national real estate business which operates two prominent brands, The Agency and Sell Lease Property with 293 sales representatives across Perth, Sydney, Melbourne and the Gold Coast.
During the past six months the combined company sold over 1,100 properties, totalling a stunning $1.2 billion.
The new real estate company also holds approximately 4,200 properties under management, and nearly 1,400 listings, with an impressive mortgage book of $1.2 billion.
As part of the transaction, property industry leader Matt LaHood has been appointed Executive Director.
Commenting on the acquisition, The Agency Managing Director Paul Niardone said:
This company-making transaction is 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.
“It will see the addition of a highly experienced east coast real estate sales and project marketing team, significant property management portfolio and extensive sales pipe-line.
“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,” he said.
Following the acquisition, The Agency has flagged a second Melbourne office, to be located in the up-market suburb of Hawthorne, as well as a new office in Central Coast NSW.
The Agency’s story of rapid growth shines in stark contrast to increasing predictions of property doom on the east coast of Australia and further stands out with the business emerging from Western Australia, which has remained a depressed property market for years.
Key to the upstart’s success has been its unique business model, which incentivises real estate agents through significantly higher commissions than the industry standard.
The model complements an aggressive campaign to grow its ranks of realty agents, further improving economies of scale and the efficiency of the business.
The Agency is increasingly building a strong track record for attracting top talent.
Recently highly-experienced Perth sales agent and auctioneer Michael Keil joined the business. Additionally, two of the top five record prices for 2018 were delivered by The Agency personnel.
As part of the acquisition The Agency has also announced it has completed the acquisition of Vicus Property Group
The acquisition sees The Agency’s WA operations grow by four staff and adds more than 200 rental properties predominantly located in the inner city Perth.