Mr. Phil Soper reports
BROOKFIELD REAL ESTATE SERVICES INC. ANNOUNCES ACQUISITION OF FRANCHISE AGREEMENTS
Brookfield Real Estate Services Inc. has approved the acquisition of certain franchise agreements from Brookfield Real Estate Services Manager Ltd.
Acquisition of franchise agreements
Under the Royal LePage and Via Capitale brands, the company will acquire franchise agreements representing 43 real estate operations and 569 Realtors across Canada for approximately $8.2-million. These agreements are estimated to generate an annual royalty stream of $1.2-million and will be effective Jan. 1, 2017.
As outlined in the company's management services agreement (MSA) with the manager, 80 per cent of the acquisition price will be paid in January, 2017, and the balance paid later in the year when the purchase price is finalized, based on the actual performance of the acquired agreements.
The payment due Jan. 1, 2017, of approximately $6.6-million, plus applicable harmonized sales tax, will be financed through a combination of cash on hand and a drawdown on the company's debt facilities.
"The company experienced strong growth in 2016, as we increased the reach and impact of our brands through a carefully considered cross-Canada expansion plan," said Phil Soper, president and chief executive officer, Brookfield Real Estate Services. "A series of competitive wins saw brokerage firms from coast to coast choose long-term affiliation with one of our industry-leading brands. This positive momentum is possible because of ongoing investments the company makes to ensure its brokers and agents are the most informed, supported and successful real estate professionals in the nation."
Mr. Soper concluded, "We enter the new year with a strong pipeline that should see us continue to add new depth to the Brookfield Real Estate Services family of brokerage firms in key markets across the country."
About Brookfield Real Estate Services
Brookfield Real Estate Services is a leading provider of services to residential real estate brokers and a network of over 17,000 Realtors. The company operates in Canada under the Royal LePage, Via Capitale and Johnston & Daniel brands.
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