Successful WA based Real Estate firm to join Ausnet
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ASX ANNOUNCEMENT
28 MARCH 2017
SUCCESSFUL WA-BASED REAL ESTATE FIRM TO JOIN AUSNET
Disruptive real estate and financial services company Ausnet Financial Services Limited
(ASX: AU1) (“Ausnet” or “the Company”) is further expanding its reach in Western Australia
with the acquisition of highly successful Mount Lawley market leader real estate agency,
Beaufort Realty.
Ausnet’s wholly-owned subsidiary, Ausnet Real Estate Services Pty Ltd (“Ausnet RE”), has
entered into a Share Sale Agreement to acquire all of the issued shares in Beaufort Realty
Pty Ltd (“Beaufort Realty”) from the shareholders of Beaufort Realty – Jonathan Adams and
Pamela Herron, Christine Kirkness and Dosta Buckovska (“Sellers”) on certain terms and
conditions (“Transaction”).
Under the new ownership structure, the well-established Beaufort Realty name and brand
will continue unchanged, as will the management structure of the agency.
Completion of the Transaction will increase the number of sales agents employed by Ausnet
under its disruptive real estate agency model named “The Agency” in Western Australia to
35 staff and 17 nationally.
Established in January 2009, Beaufort Realty not only services Mount Lawley but also has a
strong presence in the surrounding suburbs of North Perth, Inglewood, Highgate, Maylands
and Yokine.
Founders Pam Herron, Jon Adams and Christine Kirkness – who all still work in the agency
– sought to combine old fashioned values with a modern approach to business. Beaufort
Realty’s four partners (including selling director Donna Buckovska who bought shares five
years ago) have a combined 120 years’ experience working in Perth’s inner suburbs.
Beaufort Realty has a strong market share in Mount Lawley, consistently rating in the top
three local agents according to realestate.com.au. The business has 14 staff including five in
sales, five in property management and four in administration.
“When we started the business, Mount Lawley had several franchise businesses but few
independent boutique agencies,” said Director and Licensee Pam Herron.
“We normally carry around 30-40 listings at any one time, and sales over the past year were
very similar to 2015, despite a general softening of the Perth market.”
Ausnet Managing Director Paul Niardone said the acquisition fitted well with Ausnet’s
expansion plans.
Ausnet Financial Services Ltd 254 Scarborough Beach Road, Doubleview WA 6018 PO Box 1184, Osborne Park WA 6916
Tel: (08) 9204 7955 Fax: (08) 9204 7956 ABN: 37 093 805 675
“Beaufort Realty is an excellent agency with great growth potential, having established a
strong presence and reputation within the Beaufort Street precinct, Mount Lawley and the
surrounding suburbs,” he said.
“Our view is that these 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.
“Beaufort Realty has an excellent property management team. The business will add
approximately 400 property managements that will form the core of The Agency property
management division.
“We warmly welcome the Beaufort Realty team to the Ausnet family, and look forward to
working with them to support their continued growth.”
The key terms of the Transaction have been documented in the Share Sale Agreement
(“SSA”) executed today. The key terms of the acquisition are set out below.
Purchase price:
• Acquisition purchase price is $2.56 million cash, to be adjusted for actual
management fees and liabilities calculated as at the completion date of 31 March
2017.
Material conditions precedent to completion of the Transaction:
• Ausnet RE being satisfied that the accounts provided by Beaufort Realty are
consistent with the management accounts for the period prior to the execution date
and the budget of Beaufort Realty.
• Ausnet obtaining all necessary regulatory approvals or waivers pursuant to the ASX
Listing Rules, Corporations Act or any other law to allow Ausnet RE to lawfully
complete the requirements of the SSA.
• The Sellers providing to Ausnet RE with satisfactory evidence that all indebtedness
and financial accommodation, excluding trade creditors, of Beaufort Realty incurred
in the ordinary course of the business is extinguished.
• As at the completion date, Beaufort Realty holding all approvals, consents, licences,
leases and any other contracts or assets necessary for the conduct of the business.
• All consents, approvals and waivers to the sale and transfer of the sale shares.
• All assets which are necessary to enable Beaufort Realty to carry on its business
being owned by Beaufort Realty y and free from all security interests.
• Ausnet RE carrying out its due diligence investigations of Beaufort Realty and being
satisfied in its absolute discretion with those investigations.
• No event, matter, act, omission, circumstance or thing has occurred that constitutes
or may constitute a material adverse change having taken place on or before the
completion date.
The Sellers must use reasonable endeavours to procure the satisfaction of the conditions
precedent as expeditiously. If the conditions precedent are not satisfied or waived by the end
date then Ausnet can terminate the SSA and if the conditions precedent are not satisfied or
Ausnet Financial Services Ltd 254 Scarborough Beach Road, Doubleview WA 6018 PO Box 1184, Osborne Park WA 6916
Tel: (08) 9204 7955 Fax: (08) 9204 7956 ABN: 37 093 805 675
waived on or before the completion date, the completion date shall automatically be
extended by seven days.
Timetable for Transaction:
As noted above, the parties executed the SSA today and are working towards completing
the Transaction on 31 March 2017.
About Ausnet
Ausnet consists of a group of successful businesses which deliver finance broking, real
estate services, settlement services, property management (2017), project marketing,
insurance and financial planning initially to the Western Australian market with an aim to be
rolled out nationally.
This model has been created to build the core asset being a loan book currently at ~$1.1
billion by cross referring clients between business units. The largest growing referral area
has been built on a highly successful and disruptive real estate agency model named “The
Agency”. The agents have been referring ~60% of all sales for financing broking.
Ausnet is aiming to recruit ~100 sales representatives to “The Agency” in Western Australia
that will eventually deliver over 1000 property transactions per year with the aim of
converting into cross sales for mortgages, settlements and insurance. Each sales
representative that joins Ausnet not only add sales activities but also on average bring in a
database of ~2000 clients. Ausnet’s target is to have ~600 sales representatives nationally.
The Company is also backed by Finsure Group, one of Australia's fastest growing retail
finance brokerages writing over $1 billion in new mortgages every month across 850
brokers.
For more information, please contact:
Investors Media
Ausnet Real Estate and Financial Services Professional Public Relations
Paul Niardone David Tasker / Colin Jacoby
T: +61 08 9204 7955 T: +61 08 9388 0944
Ausnet Financial Services Ltd 254 Scarborough Beach Road, Doubleview WA 6018 PO Box 1184, Osborne Park WA 6916
Tel: (08) 9204 7955 Fax: (08) 9204 7956 ABN: 37 093 805 675