FRANCHISE NEWSNEWSWA

The Agency secures funding, acquires Top Level Real Estate

After a trading halt for the last few days, The Agency has announced to the ASX that they have secured the funds to acquire Top Level Real Estate.

The acquisition involves a complex $8.4 million share placement, alongside $5 million of Top Level debt which will be converted into shares at $0.01 per share.

The documentation provided with the announcement shows Top Level currently have total debts of $26,993,812, which will become $18,760,100 immediately after the deal.

The capital funding sought by The Agency to secure Top Level was initially posted at $10 million. The delays in accessing this funding are what has pushed the acquisition back from when it was initially brought to public attention in 2017.

John Kolenda has been pinpointed as a key player in the deal – his shareholding has risen significantly from 5.4 per cent to 19.9 per cent, subject to shareholder approval.

The Agency has been on a trading halt since Monday awaiting the final details of the acquisition.

“The past 15 months have been a period of exceptional growth for both businesses, and we look forward to continuing on this upward trajectory with The Agency to become Australia’s leading disruptive, high-growth real estate agency,” Matt Lahood said in the announcement.

“The whole industry is watching and talking about us because of what we have achieved, and I expect that interest to only intensify as the combined, well-funded entity continues its growth momentum.”

“This placement is a major step forward for The Agency, strengthening our balance sheet while providing us with the funds to progress the Top Level acquisition and expand The Agency and Sell Lease Property businesses nationally,” The Agency’s Managing Director Paul Niardone said.

“It also provides funds for further acquisition opportunities in Western Australia and Sydney, where we have attracted a number of enquiries from real estate businesses wishing to merge into The Agency.

“The acquisition of Top Level will result in the addition of a highly experienced east coast real estate sales and project marketing team, significant property management portfolio and extensive sales pipeline.

“It is a game-changer for The Agency and will further cement our position as the fastest growing disruptive real estate group in the country.

“Top Level, which has been trading as ‘The Agency’ on the east coast of Australia since launching in March last year, has established, with our support, a significant business in a short period of time, surpassing our recruitment and sales targets.

“Combined, its founders – Matt Lahood, Ben Collier, Steven Chen, Shad Hassen and John Kolenda – bring over 100 years of real estate and finance experience to the business.

“Post the Top Level acquisition, the company will have a strong footprint in the Perth and Sydney residential property markets, with offices in Melbourne and on the Gold Coast and plans to expand into Canberra, South Australia and further expand its Western Australian options.”

The Agency has secured $13.4 million in new equity in total and shares were trading at $0.12 as of today.

Documents show a 75 per cent – 25 per cent commission split for agents.

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