RUN Property has linked with wealth management and financial services firm Yellow Brick Road in a referral-based partnership that will provide financial and property services to their respective customer groups.
“RUN has always seen itself as part of an all-encompassing financial management solution for investors,” said Rob Farmer, CEO of the ASX-listed RUN Property.
“As an industry leading property sales and management solutions business, we have built a reputation of delivering significant value to our clients. Now, the alliance with Yellow Brick Road will go deeper into that strategy to provide a platform for total wealth management and financial advice for investors wanting to have a full solution that guides them from the initial planning stages through to the eventual sale of the property.”
The new arrangement will see RUN Property distribute Yellow Brick Road financial products and services to over 40,000 RUN clients through dedicated referral servicing hubs across eastern Australia.
Yellow Brick Road, which operates around 140 branches and licensees nationally, will in turn offer RUN’s property management service across its network of applicable branches and licensees.
According to RUN, which finished 13th on this year’s Real Estate Business Top 20 Real Estate Groups ranking, the referrals in Sydney and Brisbane have commenced, with Melbourne slated to launch in February 2013.
The new arrangement comes as RUN remains in talks with RMA Group, which announced plans to buy the property management company for $65 million earlier this year.
RMA Group has paid a $4 million deposit as part of the mooted deal, and RUN Property CEO Rob Farmer told Real Estate Business in early October that the next hurdle for RMA Group was to show that they could fund the deal. This was due to occur on November 1, although a statement on the ASX website said talks were continuing.
Mark Bouris, Yellow Brick Road’s executive chairman, said the new arrangement would assist property investors develop a strategic plan for their investment.
“The partnership between Yellow Brick Road and RUN will enable us to put investors in the best possible loan for their situation, find the right insurances to protect them and their investment, and make sure that their plan achieves the best possible return.”
Mr Farmer said as part of the deal, RUN has developed a solution that will enable Yellow Brick Road clients a co-branded offering so their client’s landlord statement will contain the Yellow Brick Road logo and broker details.
“Their clients will also have access to RUN’s unique property tracker iPhone and android application which is a first of its kind,” he added.