As covid has made us all consider whether we want to be surrounded by either concrete trees or the pristine nature of the wilderness, many have taken it upon themselves to move as far away from civilization as possible to live out the rest of their lives somewhere more peaceful and wholesome.
As a result, the Tasmanian property markets have been flourishing. Over the last five years, properties in one of the Island’s cities, Launceston, have almost doubled in price. Recording a median house price of $540,000 and a median unit price of $400,000, increasing 95% and 60%, respectively, since 2017.
The Agency Group (ASX: AU1), which operates on the mainland of Australia, has taken a particular interest in Tasmania as they have witnessed first-hand the mass migration that has been taking place, via the acquisition of Tasmanian property group, Bushbys & Co.
The team at The Agency Group had been scanning the fruitful Tasmania market as they diligently chose who would bolster and establish their presence in the growing market. After a lengthy research process, the Company locked their sites on Bushby’s Property Group.
The reason for choosing Bushby’s is quite apparent when assessing the history and presence of the Company on the Island. Established over 108 years ago in 1914, Bushby’s has been operating as a family business under the control of brothers Mark and Phillip Bushby, along with long-term shareholder Eric Anderson. Over the years, the Group has vested a solid nine-person sales team and 1300 properties under management with a combined value of $500 million.
“We’re pleased to welcome another high-quality real estate brand to The Agency. The Bushby Property Group is one of Australia’s oldest family-owned real estate businesses and their depth of experience and results align with our objective to bring the nation’s best real estate professionals together under our brand,” said The Agency MD and CEO, Geoff Lucas.
“Rarely do we see agencies with over 100 years’ experience, especially in one local area. This level of experience cannot be replicated and it’s why this partnership is so instrumental in helping our network secure a prominent and distinguished entry into the Tasmanian market.”
Soon the Company will begin operating as ‘The Agency – Team Bushby’, representing the Tasmanian arm of the national property group. Following the completion of the acquisition, The Agency will have a total number of sales staff equating to 400 people and 4800 properties under management across Australia and all its territories.
The acquisition will carry a cash consideration value of $5 million which will be funded via a combination of a financing funding facility through Macquarie Bank and existing cash reserves.
In the last quarterly report released by The Agency dated 31 March 2022, the Company recorded a revenue of $18.8 million, a 26% increase year-over-year (YoY). Gross commission income of $25.4 million, up 27% YoY, and successfully sold $1.4 billion in properties, up 17% YoY.
Bushby Managing Director, Phillip Bushby, has been personally involved in the operations of the property group for over 50 years and will continue working with the group post-acquisition and will join ‘The Agency – Team Bushby’ in a leadership role along with Mark Bushby and Eric Anderson.
“After serving the Launceston community for over 100 years and over four generations, this is a significant move for the Bushby Property Group,” said Phillip Bushby.
“We have full confidence in The Agency’s ability to continue our legacy and we are delighted to be bringing The Agency business to Launceston and surrounds.”
Trading Desk Assistant at Emerald Financial
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