A publically listed resources company has agreed to buy an expanding real estate group that will soon be present in seven states and territories.
Minrex Resources has entered into a memorandum of understanding to acquire 100 per cent of Hello Real Estate for $6.75 million in issued capital.
The two parties are currently taking part in an exclusive due diligence process that will end on 31 July 2015. Minrex will change its name to Hello Real Estate once the deal is complete.
Hello founding director Phil Horan told REB that this deal is a ‘reverse takeover’, which will give Hello Real Estate a back-door entry to the Australian Securities Exchange.
Minrex currently has two leases and will exit the mining business once the reverse takeover is complete, according to Mr Horan.
One of the conditions of the deal is that Minrex raises at least $5 million of funds, which will be used for working capital and to expand Hello.
Mr Horan said that Hello, which launched in 2013, has 12 licensees in Sydney, Melbourne and Adelaide. The agency plans to launch in Brisbane by the end of August, and is scheduled to expand to Western Australia, Tasmania and the ACT by the end of this year, he added.
Mr Horan said Hello is currently finalising some major technology projects.
“The biggest one is Hello Property Exchange, where everything will be completely underpinned by technology,” he said.
“All transactions to do with property – whether it be renting, buying, selling or mortgage services – will be centralised into a hub.”
From next month, all Hello properties will be available via online auction platform BidRhino, Mr Horan said.
“So if you go to an open home or a private inspection, once you register, within minutes of getting back in your car a question will pop up on your phone asking if you’re interested,” he said.
“If you are interested, you can immediately go to auction on that property – so it’s like the eBay of property.”
Hello offers vendors a fixed-fell service that includes a professional valuation, conveyancing and settlement services.
According to Minrex’s most recent annual results, the company generated $57,000 of revenue for the 12 months to 30 June 2014 and posted a net loss of $437,000.
The company’s website describes Minrex as a speculative exploration company looking for gold and tin in Western Australia and Tasmania.
[Related: Fast-food king joins Hello Real Estate]