Ensure you never miss an issue of the
real estate business bulletin
Franchise PM division boosted with regional rival takeover

Franchise PM division boosted with regional rival takeover

by Staff Reporter 0 comments

Raine & Horne has further strengthened its regional offering with the acquisition of a rival franchise office, tripling its property management business in the process.

 Raine & Horne Wagga Wagga has doubled the size of its business with the purchase of competitor Elders Residential Wagga Wagga.

The move has already taken place, with local Raine & Horne director Grant Harris confirming to Residential Property Manager's sister title, Real Estate Business, that Elders Residential is now flying the Raine & Horne banner.

The acquisition coincides with an investor-driven spike in market activity, with buyer enquiries for Wagga Wagga properties 20 per cent stronger than in winter 2013, according to Raine & Horne. 

It will also more than triple the size of its property management business, with five extra staff members joining the team.

A spokesperson for Raine & Horne corporate said the acquisition is part of the network's recent expansion plans, but it is not part of a direct takeover strategy of rival offices nationwide. 

Mr Harris, who would not reveal the price of the acquisition, confirmed Raine & Horne offered a majority of Elders staff a position following the move, with two staff members choosing not to take the offer.

Mr Harris said the transaction will strengthen the "depth and expertise” of their sales team, with an extra four agents set to join them.

"This purchase will also push Raine & Horne into the top three real estate firms in Wagga Wagga. However, a bigger team will not compromise our dedication to delivering personalised customer service to our property owners, buyers and tenants,” he said.

The market timing of the acquisition couldn’t be better, according to Mr Harris, with more yield-hungry investors from Sydney, Newcastle, Wollongong, Canberra and Melbourne jostling with first home buyers for Wagga’s affordable sub-$300,000 entry-level properties.

“Wagga felt the impact of the global financial crisis like many other major regional hubs but it’s starting to turn the corner on the back of lower interest rates and improved consumer confidence, a fact that savvy investors have recognised,” he said.

“More investor activity can be attributed to healthy yields of between 5.5 and 6.0 per cent, and the prospect of capital growth as confidence continues to grow,” he added.   

Franchise PM division boosted with regional rival takeover
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
An industry where the resilient succeeds

Tim Heavyside believes that a strong support team and good foundations are paramount to success in the real estate industry, and with regu...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?