UK-headquartered online real estate agency Purplebricks is expanding to America; the company told the London Stock Exchange last Wednesday.
The company also announced details of the placing to raise gross proceeds of up to £50 million through the issuance to finance the expansion in a state by state roll-out to the US by mid-2017.
Since it’s launched less than three years, Purplebricks say they have sold a circa US$7.5 billion of property in the UK.
“We are proud to announce our plans to launch Purplebricks in the US, a market we estimate to be worth some US$70 billion in annual estate agent commission,” Purplebricks Group, group chief executive Michael Bruce told the London stock exchange in a statement last week.
“For US customers we are seeking to offer a better deal in selling and buying their homes, with a more convenient, transparent and cost-effective service.”
Eric Eckardt has been named as the new chief executive for Purplebricks US.
“As with our UK and Australian launches, we will adopt a state-by-state rollout strategy. The funds raised through the Placing will not only be deployed to build the Purplebricks brand in the US but, also, the people and infrastructure needed to manage rapid growth in that market,” Bruce said.
“With trading in the UK and Australia in-line with the board’s expectations and with the development of the US opportunity, we are proud of the team’s achievements to date and excited for our global future.”
The company launched its business in the Australian market last September and now services Queensland, Victoria and New South Wales.
Purplebricks intends to launch in Adelaide and Perth soon.