Acquisition completed of SLP and Real Estate Assets
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ASX MARKET RELEASE
21 February 2018
ACQUISTION OF SELL LEASE PROPERTY AND REAL ESTATE ASSETS COMPLETED
Australia’s only real estate group with two distinct brands, targeting distinct markets
Highlights
• Settlement completed on acquisition of Sell Lease Property (real estate agency), Complete Settlements
(conveyancy business) and Value Finance (mortgage broking business) from ServTech Global Holdings;
• WA real estate agency licence has been issued – all conditions to the transaction now satisfied;
• Brings together Australia’s fastest growing real estate agencies and links the two largest and leading
sales offices in Western Australia in the past two years for listings sold;
• Only national real estate group to run with two distinct brands, targeting distinct markets;
• Caters to the different requirements of sales representatives:
o The Agency: high-level support and exclusive marketing areas
o SLP: online support and unrestricted marketing areas
• Significantly increases recruitment potential by appealing to agent’s requirements (exclusive marketing
areas or unrestricted marketing areas);
• By offering a one-stop-shop for real estate services, agents will be able to increase cross-selling and
increase recurring annual revenues;
• Benefits from ServTech’s leading technology platform providing back-office support.
Achievements since proposed acquisition announced:
• Bulk of Sell Lease Property Ltd (SLP) property consultants have already 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 SLP 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);
• Combined, the two groups sold 125 properties, worth a combined value of $61 million which was
ranked fourth amongst real estate groups nationally - with established company Harcourts, ranked
third, selling 126 properties.
The Agency Group Australia (ASX:AU1) (“The Agency” or “the Company”), formerly Ausnet Financial Services
Limited, is pleased to announce settlement has been completed on the acquisition of three wholly-owned
subsidiaries from ServTech Global Holdings Limited (ASX: SVT) (“ServTech”) (refer to ASX announcement dated 14
December 2017).
The Agency’s wholly-owned subsidiary, Vision Capital Management Ltd, has now received a real estate agency
licence from the Western Australian Department of Mines, Industry, Regulation and Safety.
With receipt of the licence, all conditions precedent have now been satisfied and settlement of the transaction
has now been completed.
The Company recently announced successful completion of financial, legal and technical due diligence of the SVT
Companies. The parties entered into a formal Asset Sale Agreement (rather than a Share Purchase Sale
Agreement as previously contemplated) (refer to ASX announcement dated 15 February 2018).
Consideration for the transaction is as outlined in the 14 December 2017 ASX announcement.
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.
Strategic reason for acquisition
The Agency – following the Sell Lease Property acquisition - will now be able to cater to the different
requirements of sales representatives:
• The Agency: high-level support and exclusive marketing areas
• SLP: online support and unrestricted marketing areas
The acquisition opens the door to sales representatives requiring low level support. Previously, The Agency
turned away one out of two agents as it didn’t offer this service.
This acquisition therefore significantly increases The Agency’s recruitment potential, effectively giving the
company access to double the number of agents.
By offering a one-stop-shop for real estate services, agents will also be able to increase cross-selling and increase
recurring annual revenues.
SLP agents have the same referral requirements in terms of settlement services, mortgage broking and property
management which is expected to double transactions.
The Company will also benefit considerably from ServTech’s leading technology platform, with ServTech to
provide back-office support to The Company including virtual services to support the Sell Lease business.
ServTech will retain its IT development and maintenance business.
The Agency Group’s Managing Director Paul Niardone said:
“I am pleased to inform investors and stakeholders that settlement has now been finalised on this acquisition
which has created Australia’s only national real estate group with two distinct brands, targeting distinct markets.
“Importantly, by having these independent brands, we can now appeal to those sales agents who want exclusive
marketing areas as well as those who don’t want to be restricted to areas. This significantly increases our
recruitment potential to become the national leader in real estate.
“Under the management of The Agency Executive Director Matt Lahood, we will now accelerate the roll-out of The
Agency and SLP brands nationally, replicating the significant success in the WA real estate market where both
brands now dominate.
“We are already witnessing the strategic benefits of this acquisition with the combined group in January 2018
ranked 4th for properties sold nationally.”
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.
END
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. The Agency’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