A recently announced acquisition will result in 10 McGrath Estate Agents’ franchise offices across Sydney’s mid- to upper north shore, north-west and northern beaches regions becoming company-owned offices.
The 10 offices, under the leadership of Shane Smollen, represent one of the largest real estate agency groups in the country with approximately 65 sales agents, including 12 of the highest-performing agents in McGrath’s current top 25 agents over the past 12 months.
The Smollen group also manages over 2,200 properties across its network, meaning McGrath’s company-owned property management portfolio will be one of the country’s largest with over 7,200 managements.
McGrath CEO John McGrath said this was a strategic step in the company’s growth plans, offering greater scale and technological investment.
“We are continuing to rapidly grow our franchise network organically into other high-value high volume markets while never losing focus on McGrath’s most important stakeholders, being our team and our customers,” he said.
Mr Smollen said the proposed acquisition represents an exciting opportunity for his team and their clients, reinforcing the network’s culture, standards and innovation.
“It is fantastic for our staff and while in many respects it is business as usual, we are inspired with the long-term planning and direction of the group.”
In August, Mr McGrath revealed that the group is considering listing on the ASX.
During a panel discussion at an Aussie Home Loans event in Melbourne on 10 August, the real estate tycoon said: “It is an option. We are considering it.”
“I think in our industry … scale, acquisition, consolidation within the real estate sector is now really prime time. It’s going to happen – it’s happened overseas,” he said.
“It’s an exciting option for us and we’re really looking at that very closely.”
McGrath Estate Agents posted record residential sales volumes of $12.3 billion in 2014-15.