Elders, now in its 177th year, has announced that it has entered into an agreement to acquire the Southern Districts Estate Agency (SDEA) headquartered in Bunbury.
Established more than 40 years ago as a rural real estate and auctioneering business, SDEA is a leading residential and commercial real estate agency operating from three locations in the South West region of Western Australia.
As a key component of its strategic Eight Point Plan, the Elders group is targeting aggressive growth in its real estate business by expanding the existing national network of over 900 sales people and 300 property managers. Last year this team contributed to Elders’ $15.7 million improvement in its end of year financial results, recording a $56.2 million EBIT. This included a margin of $29.2 million contributed by the Real Estate operations.
Growth in earnings has been achieved through the recruitment of quality people, excellent market conditions, business improvement initiatives and acquisitions of company owned offices all implemented under a new Real Estate strategy being driven by general manager, Tom Russo.
This latest acquisition will see more than 60 experienced real estate professionals transition to the iconic pink shirt as part of Elders Southern Districts Estate Agency.
Tom Russo says that Elders is excited about its latest strategic acquisition and is confident that the SDEA team will be an excellent asset to the Elders Real Estate network in achieving its improvement and growth ambitions.
“We are focussed on lifting the service offering for our teams, branches, franchise principals and, most importantly, clients – ensuring we’ve got innovative solutions and investing in experienced professionals to achieve operational excellence.”
Elders Southern Districts Estate Agency’s service offering will continue to include rural, residential and commercial sales, and both residential and commercial property management.
Elders west zone general manager James Cornish said; “the Bunbury branch is a very important part of our business and has achieved some tremendous growth in recent years.”
“We are committed to growing the business and our presence in the South West region and the acquisition of SDEA presents an excellent opportunity to further diversify our client offering across our core products and services.”
SDEA’s chief executive officer, Drew Cary says the SDEA directors are excited about the prospect of joining the Elders network.
“We are confident that this transaction will put SDEA in an even stronger position as we move into the next phase of the business’ evolution, allowing us to work within a national team, enhance the offering we are able to provide to our valued clients and provide wonderful opportunities for our team members.”
The integration of the two businesses will be phased in over the coming months, ensuring there is little to no disruption to clients.