Property and Financial Services provider The Agency Group Australia Ltd (ASX: AU1) provided a market update on 10 December 2018. The company reported that the Agency (East Coast) has delivered its best month to date for FY2019 with Gross Commission Income (GCI) of $2.4 million.
The Agency Group Limited delivered strong results in the November month with a combined Gross Commission Income of $3.66 million. The group sold 210 properties in the November month with 84 from East Coast and remaining from combined WA.
The Agency (East Coast) has sold two of the top five record prices on the East Coast in 2018 which includes Bellevue Hill’s Rona estate which was sold for $60 million and Vaucluse waterfront mansion which was sold for $40 million.
The company reported that in a span of two years that the Agency (WA) and Sell Lease Property have more than 4% market share in WA compared to the market leader which has 9% market share. While commenting on the November month results, the Agency’s Managing Director Mr. Paul Niardone told that these are the extremely pleasing result for the company after taking into consideration the steep decline in the Sydney and Melbourne property prices. He further added that these results are evidence that company’s disruptive model attracts the best talent that can negotiate the best results for company’s clients in any market conditions and continues to outperform the company’s peers who are finding it difficult to grow and recruit.
Further, the Agency (East Coast) has achieved two of the top five record sales on the East Coast in 2018. In the month of October, the company’s Ben Collier sold the gothic mansion Rona in Bellevue Hill for $60 million which is almost double from the previous suburb record of $30.8 million set in 2015. Recently, Mr. Collier also sold a waterfront mansion on Coolong Road in Vaucluse in the vicinity of $40 million.
In the month of November, the company lodged its Prospectus for the issue of 18,333,333 shares to the shareholders of Top Level Real Estate Pty Ltd for the acquisition of all of their Top Level shares by the Company. Recently on 28 November 2018, The Agency shareholders voted overwhelmingly in favour of the acquisition of high-growth east coast real estate firm Top Level Real Estate Pty Ltd to become a national real estate business with two prominent brands (The Agency and Sell Lease Property).
As at 31st October 2018, the proposed combined group was having a combined revenue of $15.1million for FY2019 which is 52% higher than FY2018 revenue in only four months. After the acquisition, the Agency is targeting a 50% year-on-year increase in annual revenue for FY 2019.
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