Gold mining company turns to Hello for sale by owner disruptee business
Hello Real Estate - the for-sale-by-owner company - is set for December 2015 stock market listing with the move by Minrex Resources NL to take over Hello for $6.75 million.
Minrex will change into HelloReal Estate Limited as it raises $5 million in capital to expand the Hello business, after completion of the July 31 due diligence.
Hello, a licensed real estate agency that offers a low fixed fee service for clients to sell their own property, comes with dedicated hands-on mentoring.
Hello describes itself as a licensed real estate business "which offers its clients a fixed-fee service to sell their own property supported by a team of professional service providers, covering all aspects of selling, web listings, advertising, negotiation, conveyancing and settlement services as well as professional mentoring."
According to Hello, the system achieves significant savings, less time on market and "the best market price for the property".
Hello launched in 2012 in South Australia and then into NSW in mid-2013 and now has 12 satellite business unit licensees.
The listed company will have a new board, headed by Bob Lapointe, the franchise entrepreneur who brought Kentucky Fried Chicken, Pizza Hut and Sizzler to Australia.
Now in his 70s, Bob Lapointe has chaired Hello since May 2014.
Executive directors will include Hello founder Philip Horan, along with Trish Mewett and Marcus Cann.
Minrex executive director Simon Durack, said that the strategic shift in direction was one that will see its emerge "in an exciting new field" with enormous upside for all shareholders, as a disruptor in the Australian property market.
“Hello is set to really shake up the current players in the real estate market, introducing an innovative and comprehensive new offering that will enable increased support and guidance for home buyers and sellers in a more efficient and cost effective structure.”
"The Hello system puts the property preparation, marketing and sale process clearly in the hands of the property owner resulting in, significant savings, less time on market and achieving the best market price for their property.
"Hello provides the client with all of the tools that are required to successfully market and sell residential property including; house stylists; professional photography; signage; multiple website listings; live call centre; high quality brochure and sales aid production, Valuation by a licensed valuer, all current on-market and recent sales data; contracts; offer negotiation; conveyancing and settlement services.
"Hello is currently integrating all of the current services and the extensive network of strategic partners into a single source “The Hello Property Exchange”.
"The Real Estate Market is rapidly changing, Vendors and Buyers are demanding alternatives, agents are being forced to embrace new technologies and franchise agencies are now outnumbered 3-1 by independent agencies in Australia who now represent the major force in real estate sales.
"These independent agents are the target market for Hello’s White Label CRM & Workflow technology systems.
"Clients are people who fully appreciate the value in having someone present to support them during the sale process and the savings that can be achieved using the Hello system and services which are designed to cover the whole spectrum of the market from low cost sales to premium properties.
"The Hello model also offers builders, developers, renovators and investors a dedicated, hands on licensed real estate sales agent to handle the pre-sale and sale phase of their project development or the sale of investment property."
Its strategic partners include BidRhino for online auctions, Vow Financial for mortgage services, Thorn Money, CoreLogic RP Data and Jim's Building Inspections.
MinRex Resources NL (“MinRex”) is an exploration company, listed on the Australian Securities Exchange, with its principal focus being the exploration and development of gold, base metal and tin projects in Australia.
MinRex holds two principal projects, the Deflector Extended Gold Project at Gullewa in Western Australia and the Heemskirk Tin Project in Tasmania.
