19/09/2018 - 13:37

The Agency confirms Top Level buy, $13m equity deal

19/09/2018 - 13:37

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Perth-based The Agency Group Australia has executed an option to acquire east coast real estate group Top Level for $5.5 million, while also announcing an $8.4 million capital raising and a $5 million debt conversion deal.

The Agency confirms Top Level buy, $13m equity deal
Paul Niardone (left) with The Agency executive director Matt Lahood. Photo: Tony McDonough

Perth-based The Agency Group Australia has executed an option to acquire east coast real estate group Top Level for $5.5 million, while also announcing an $8.4 million capital raising and a $5 million debt conversion deal.

Under the Top Level purchase, 550 million Agency shares will be issued to Top Level shareholders at a price of 1 cent per share.

Top Level has seven offices in Sydney, along with operations on the Gold Coast and in Melbourne, which are operated under joint venture with The Agency.

Following completion of the acquisition, The Agency will have about 300 sales representatives across Perth, Sydney, Melbourne and the Gold Coast.

It will also have over 4,000 properties under management, listings of  approximately 1,100 and a mortgage book worth more than $1.1 billion.

“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 managing director Paul Niardone said.

As part of the deal, The Agency said it would convert $5 million of Top Level debt into equity at the same share price as the acquisition.

Top Level chief executive Matt Lahood will join The Agency board as an executive director.

The company has also tapped investors for $8.4 million, with shares issued at 1 cent each under the placement.

“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,” Mr 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.”

Shares in The Agency were up 18.18 per cent at 1.3 cents each at 1pm AEDT.

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