Agency Group in WA purchase

ASX-listed The Agency Group Australia has announced plans to acquire the residential sales and management arm of North Perth-based Vicus Property Group in a cash and scrip deal.

Under the deal, the group will issue Vicus with 41.2 million shares, along with a $50,000 cash payment.

The company’s shares were trading at 1.8 cents each today, valuing the deal at about $800,000.

Under the terms of the acquisition, The Agency’s WA operations will grow by four staff and add more than 200 rental properties, predominantly in the inner city of Perth, increasing total property managements on the company’s books to approximately 700 in the state.

Under the new ownership structure, Vicus Residential’s licensee, Gianni Redolatti, will remain as the named licensee.

Agency Group managing director Paul Niardone said the new acquisition was profitable.

“This business adds to The Agency’s significant growth potential and establishes a strong presence in Inglewood, Mount Lawley and surrounding inner city suburbs, complementing our purchase last year of highly successful real estate business Beaufort Realty,” he said

“We strongly believe inner-city suburbs will continue to attract strong buyer interest as they offer unique housing stock, excellent proximity to the city and unrivalled lifestyle choices given the stand-out restaurants, cafes, shops, schools, sporting, community and transport facilities.”

Vicus Residential has previously reported earnings of approximately $300,000 per annum and turnover of $800,000 to $1 million per annum in the 2017 financial year.

Shares in The Agency were off 5 per cent at 1.8 cents each today.