The Agency sells off WA rent roll to pay down debt

PHOTO: The Agency

Despite encouraging results in FY20 with its first full-year EBITDA profit since listing, real estate group The Agency (ASX: AU1) faces the cold reality of a $12 million loan that is due to Macquarie Bank by the end of this month.

A deal announced today is set to pay off 30 per cent of that sum following the $3.6 million sale of The Agency’s West Coast rent roll – comprising 1,173 managements – to Managex Funds Management.

Managex was recently established by Future Fund board member and Crown Perth chairman John Poynton and Emerald Capital managing director Kim Slatyer.

The newly formed entity will licence The Agency brand in Western Australia for the property management business and be based out of The Agency’s Perth office. The deal also includes a reciprocal referral agreement on sales and property management leads.

The asset to be sold forms part of a total rent roll and loan book the company estimates is worth $27 million, generating an annuity income in excess of $10 million per annum.

After the sale, The Agency will still have 3,665 properties under management as part of its East Coast property management business.