The Agency Group (ASX: AU1) secures $13.4 million in new equity to acquire Top Level Real Estate, according to an announcement made after a trading halt. The fast-growing Sydney firm will be acquired through a share placement worth $8.4 million and the conversion of Top Level’s debt into new shares worth $5 million. Although awaiting shareholder approval, the share placement has strong support from existing shareholders, including non-executive director John Kolenda, whose stake in The Agency is expected to rise to 19.9%. The acquisition of Top Level is a “game-changer,” says Managing Director Paul Niardone, who expects The Agency’s market capitalization to reach about $30 million upon the completion of the transaction. Top Level will bring in a highly experienced east coast real estate sales and project marketing team, a significant property management portfolio, and an extensive sales pipeline, he added.
Matt Lahood, former executive at McGrath, co-founded Top Level with Ben Collier, Steven Chen, Shad Hassan, and John Kolenda. Following The Agency’s successful $13.4 million equity raise, the acquisition of the Sydney-based firm is set to go ahead. Top Level has achieved exceptional growth over the past 15 months, recording 693 residential sales totaling $1.4 billion, and has built a property management portfolio of over 3,300 properties. Upon completion of the transaction, The Agency will have around 300 sales reps in Perth, Sydney, Melbourne, and the Gold Coast. Additionally, it will have approximately 4,000 properties under management and a mortgage book worth $1.1 billion. Matt Lahood will join The Agency’s board as an executive director and is excited to continue building the company’s momentum.
