The Agency sell $3.6 million West Coast rent roll to Managex Funds Management
The Agency West Coast have offloaded their rent roll for $3.6 million to Managex Funds Management, a private company chaired by Crown Perth chairman John Poynton.
The deal involves an ongoing partnership with Managex, who are looking at further rent roll acquisitions with The Agency.
The WA rent roll business is currently 1,173 managements.
The sale does not include The Agency Group's east coast property management business which consisted of 3,665 properties under management at the end of June 2020.
"The Agency reaffirms its commitment to East Coast property management business, which remains integral to the Company", The Agency advised.
Managex will use The Agency Group brand in WA under a licence agreement and will focus on retaining property management staff.
They will refer sales leads to The Agency, with The Agency in turn referring property management leads to Managex.
The Agency will accomodate Managex at its Perth office.
Poynton, who sits on the board at Future Fund, recently established Managex alongside Emerald Capital managing partner Kim Slatyer, who is Managex's managing director.
Managex secured debt funding for the acquisition from Judo Bank which recently established an office in Perth headed up by managing director Ben Tuszynski.
The deal is expected to be completed by the end of Q3 CY2020.
On the formation of the strategic partnership and the sale of the West Coast rent roll, The Agency Group’s managing director Paul Niardone, said the sale of the WA rental roll business will improve their balance sheet and facilitate greater alignment to their core business.
“The Agency continues to develop its unique busines model which attracts and incentivises the best real estate sales talent," Niardone said.
"This sale increases our focus on developing this model while simultaneously increasing our referral power and overall business flexibility.
“The benefit to our sales agents is that they will have access to a larger pool of sales leads from the growing Managex owned rent roll and they will also be rewarded for referrals of property managements.”
