Company Update
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ASX MARKET RELEASE
Company Update
“The Agency” Top WA Office in July and Expands into the Gold Coast.
Ausnet Financial Services Limited (ASX: AU1) (“Ausnet” or “the Company”) continues to
achieve significant growth of its wholly owned “The Agency” real estate business, with sales
results in Western Australia amongst the industry’s best, agent recruitment targets being
achieved and further growth into the eastern states of Australia.
Strong Western Australian sales growth
For the month of July, based on independent industry numbers produced by industry body
Real Estate Industry of Western Australia (REIWA), the Agency was recognised as the Top
Office by Value of Properties Sold and Top Office by Number of Properties Sold for Perth
metro sales.
1573 properties were sold in Perth during July, with the Agency selling 54 properties, with a
combined value of $ 28,652,500.
For the June quarter, the Agency sold 129 properties from a total of 5497, giving it a market
share of 2.3% in a highly fragmented market.
Commenting on the results, Ausnet Managing Director, Mr Paul Niardone, said, “This result
is outstanding, particularly as this is only the second full year of operation for the Agency.”
“The Agency has been consistently in the top five offices for number of sales and value of
sales for the last six months and to hit number 1 in July and securing over 2% Perth home
sales market share shows that our strategy of recruiting quality sales agents is correct as we
are punching way above our larger competitors.”
“Our model continues to deliver strong growth in a shrinking and difficult WA market. Since
the start of The Agency the WA market has declined approximately 9% in terms of the
average price of a home in Perth and the number of sales has decreased by approximately
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
12% making Perth the worst property market in the Country. However, we continue to
rapidly grow. This gives us great confidence that expanding into any market our model will
thrive” added Mr Niardone.
The Agency up to 50 Sales Agents in WA
Since launching the Agency brand in Western Australia, Ausnet had set a target of securing
+50 high quality and respected Sales Agents by June 30 2017.
The Agency has attracted, and it believes will continue to attract, significant interest from
Sales Agents wishing to join its business.
As at June 2017 the Agency has attracted 50 Sales Agents to its business and believes it will
continue to add approx. 25 agents to its Western Australian business each year.
Securing these agents, who come to the business with a strong sales capability and network
in the location in which they are based, are central to the successful expansion of the
Agency model.
Expansion of the Agency into QLD
Ausnet is committed to expanding The Agency in a strategic manner into key real estate
markets outside of Western Australia.
As such, the Company wishes to advise that it has signed an office lease in Surf Parade,
Broad Beach Queensland and expects to open its Gold Coast office next month.
Ausnet believes the Gold Coast market to be highly prospective and capable of generating
significant sales (numbers and volume) to The Agency.
The entry into the Gold Coast market will complement the operations of The Agency in
Sydney and Melbourne, with those offices operating under a License Agreement between
the Company’s wholly-owned subsidiary, Ausnet Real Estate Services Pty Ltd (Ausnet RE),
and Top Level Real Estate Pty Ltd (Top Level), pursuant to which Top Level may use “The
Agency” brand and intellectual property on the east coast of Australia. As announced on 30
January 2017, Ausnet RE has also entered into an Option to Purchase Agreement with Top
Level which grants the Company (through Ausnet RE) the option to acquire all of the issued
capital of Top Level by 30 January 2018.
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
Growth figures and company progress
The Company is currently finalising its Annual Report for 2017 and expects to release this,
together with an update on growth figures and a detailed company progress update in the
coming weeks.
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.
Corporate website: www.ausnetrealestateservices.com.au
The Agency website: www.theagency.com.au
Investors
Ausnet Financial Services Ltd
Paul Niardone
T: +61 08 9204 7955
paul@ausnetrealestate.com.au
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