Agency Group Australia Ltd (ASX:AU1) has entered into a binding term sheet to acquire all of the issued shares of Vicus Residential Pty Ltd.
This is the residential sales and management arm of The Vicus Property Group which has a portfolio of more than 200 managements spanning houses, units and apartments in Perth.
The acquisition will see The Agency’s Western Australian operations grow by four staff and add more than 200 rental properties predominantly in the inner city of Perth.
This will increase total property managements on The Agency’s books to about 700 in the state.
Turnover of about $1 million in fiscal 2017
Managing director Paul Niardone said: “This business adds to The Agency’s significant growth potential and establishes a strong presence in Inglewood, Mount Lawley and surrounding inner city suburbs.
"The acquisition complements our purchase last year of highly successful real estate business Beaufort Realty.”
Vicus Residential has previously reported underlying earnings of about $300,000 per annum and turnover of about $900,000 for FY2017 (historical and unaudited financials).
A total of 41.2 million ordinary shares in The Agency will be issued as part consideration, as well as a cash payment of $50,000.
Inner-city demand likely to remain strong
Niardone believes inner-city suburbs will continue to attract strong buyer interest.
These areas offer unique housing stock, excellent proximity to the city and unrivalled lifestyle choices given the proximity to restaurants, cafes, shops, schools and transport facilities.