Asset Sale Agreement signed for SLP and Real estate assets
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ASX MARKET RELEASE
15 February 2018
FORMAL ASSET SALE AGREEMENT SIGNED FOR SELL LEASE PROPERTY AND REAL
ESTATE ASSETS
Combined businesses dominating WA real estate market
Highlights
• Due diligence of three wholly-owned subsidiaries of ServTech Global Holdings completed to The
Agency Group Australia’s satisfaction;
• Formal Asset Sale Agreement signed, with completion subject only to issue of WA real estate agency
licence, which is expected to occur in near future;
• Bulk of Sell Lease Property Ltd property consultants have signed new employment contracts with The
Agency Group (93 in WA, 9 in QLD and 8 in Victoria);
• In WA where both brands have largest footprint, The Agency Group and Sell Lease Property Ltd
continue to dominate sales rankings (number and value of sales), with January REIWA results of;
o Sell Lease Property top office for listings sold (64) with The Agency Group second (61 listings
sold) - with next best having 30 listings sold.
o The Agency Group ranked number one for value of sales ($37 million), with Sell Lease Property
second ($25 million)
o Combined, the two groups sold 125 properties, worth a combined value of $61 million) which
was ranked fourth amongst real estate groups - with established company Harcourts, ranked
third, selling 126 properties.
The Agency Group Australia Limited (ASX:AU1) (“The Agency” or “the Company”), formerly Ausnet Financial
Services Limited, is progressing with the acquisition of three wholly-owned subsidiaries from ServTech Global
Holdings Limited (ASX: SVT) (“ServTech”) (refer to ASX announcement dated 14 December 2017).
Following successful financial, legal and technical due diligence of Sell Lease Property (real estate agency),
Complete Settlements (conveyancy business) and Value Finance (mortgage broking business) (SVT Companies)
the parties have entered into a formal Asset Sale Agreement (rather than a Share Purchase Sale Agreement as
previously contemplated).
Consideration for the transaction is as outlined in the 14 December 2017 ASX announcement.
The Company believes the acquisition of these businesses will add significant revenue to its existing infrastructure
and operations, with rationalisation and infrastructure/operational efficiency savings already identified across the
businesses to be acquired.
“These are two strong brands, that in a short period of time, have risen to dominant positions in the WA real
estate market,” said The Agency Group MD, Mr Paul Niardone.
“Both brands have experienced stunning results, which we plan to replicate as we roll both brands out on a
national scale,” he added.
Since the proposed acquisition was announced, significant achievements have been made, including:
• Bulk of Sell Lease Property Ltd property consultants signing new employment contracts with The Agency
Group (93 in WA, 9 in QLD and 8 in Victoria);
• In WA where both brands have largest footprint, The Agency Group and Sell Lease Property Ltd continue
to dominate sales rankings (number and value of sales), with January results of;
o Sell Lease Property top office for listings sold (64) with The Agency Group second (61 listings sold)
- with next best having 30 listings sold.
o The Agency Group ranked number one for value of sales ($37 million), with Sell Lease Property
second ($25 million)
o Combined, the two groups sold 125 properties, which was ranked fourth amongst real estate
groups - with established company Harcourts, ranked third, selling 126 properties.
The Agency Group intends for Sell Lease Property Ltd to remain as a standalone business, while Complete
Settlements Pty Ltd and Value Finance Pty Ltd to merge with the existing conveyancing and mortgage broking
businesses of The Company.
Settlement of the transaction remains subject to The Agency’s wholly-owned subsidiary ,Vision Capital
Management Ltd, receiving a real estate agency licence from the Western Australian Department of Mines,
Industry, Regulation and Safety. The Agency expects to receive the licence imminently.
Ends
For more information please contact
Investors
The Agency Australia Ltd
Paul Niardone
T: +61 08 9204 7955
Media
Chapter One Advisors
David Tasker / Colin Jacoby
T: +61 433 112 936 / +61 439 980 359
About SVT Companies
Sell Lease Property Pty Ltd (SLP)
Established in 2011, SLP is an innovative, best practice real estate agency which has expanded its property
consultant base to over 200 nationally. SLP was the number one agency in Western Australia by Listings Sold at
the 2015/2016 REIWA Awards and awarded eighth place on BRW’s 2016 Fast 1000 Companies in Australia.
Complete Settlements Pty Ltd
Complete Settlements is a Perth settlement agency providing a full range of professional conveyancing from title
searches to property settlements.
Value Finance Pty Ltd
Value Finance’s primary focus is providing innovative, transparent and efficient home loan and finance solutions
based on our clients unique requirements.
Value Finance assist with a range of loans from First Homebuyer loans, through to investment loans,
development loans, loans for Visa Holders, car loans and refinancing.
The company has recently won Best New Office in WA at The Adviser Better Business Awards 2017 and State
Finalist for the 2017 Mortgage & Finance Association of Australia (MFAA) Excellence Awards.
About The Agency Group Australia Ltd
The Agency Group Australia Ltd 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.
The Agency Group Australia Ltd 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 adds
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 1300 brokers.
Corporate website: www.ausnetrealestateservices.com.au
The Agency website: www.theagency.com.au