Group wants to do more than ‘just collect rent and sell houses’

Coronis will make its fifth diversification play in little more than a year, with property services forecast to soon form a minority of the group's revenue.

Managing director Andrew Coronis told Real Estate Business that the Brisbane-based group expected to start a connections business within the next two months.

Coronis has already added in-house broking, planning and budgeting businesses in the past year, while also forming a conveyancing partnership with AG Edwards Legal & Compliance.

Mr Coronis said that millions of dollars have been invested to establish the four businesses.

“There has been a lot of money put into setting up systems, setting up structures, setting up technology, and of course seeding the business to get it going,” he said.

The group claims to employ more than 300 staff, turn over more than $40 million and manage more than 5,000 properties.

Real estate services are forecast to represent 70 per cent of group revenue in 2014/2015, with that share expected to fall 45-50 per cent in 2016/2017, Mr Coronis said.

Broking and planning are regarded as the main growth opportunities, although real estate revenue is forecast to continue increasing, he added.

Mr Coronis said it was part of a strategy to move away from being a transaction-focused real estate business to an end-to-end property and finance group.

He said that agents haven’t evolved fast enough and that consumers rightly question the value of paying thousands of dollars to complete a series of transactions.

“Most agencies just collect rent and sell houses, and that’s what we’ve been to date,” he said.

“I want to try to get away from that idea that we’re just here to help people transact a house and collect the rent to we’re here to look after them and help them with their goals in life.”

The different parts of the Coronis group function as separate operations with separate balance sheets, Mr Coronis said.

Each business leader has an equity stake in that business and is responsible for ensuring it meets compliance obligations, he said.

[Related: National group diversifies into mortgage broking]

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