McGrath in expansion mode

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Jun 2, 2016

McGrath in expansion mode

McGrath is continuing to expand its presence in South-East Queensland, and is taking another 175 Millers Point properties to market for the NSW government.

McGrath Springfield principals Steve Hodgson and Tracey Caruana, and head of property management, Claire Wells.

Though McGrath shares are still languishing at almost half their listing price, the company remains in expansion mode.

The real estate company has opened a new office in Springfield, boosting to 18 the number of offices the group now has in South-East Queensland.

McGrath Chief Executive John McGrath said the South-East Queensland Western Corridor has emerged as a growth area due to its diverse economy, strong infrastructure development and good employment opportunities.

“The Western Corridor has experienced significant economic and population growth over recent years,” he said.

Steve Hodgson and Tracey Caruana will be co principals of the new office, having operated Ray White Springfield, which is in the area, for the past twelve years.

Hodgson said, “As one of Australia’s fastest emerging urban centres, infrastructure investment in Springfield has been robust. New shopping precincts and residential developments are also underway in Redbank Plains, which is set to boom.”

Over the past three years Springfield has experienced strong price growth only marginally below that of Sydney and Melbourne, with the median house price increasing by 10% to $395,627. Nearby Redbank Plains has experienced similar growth with the median house price rising by 12% over the same period to $313,000.

McGrath has also confirmed it has been appointed by Property NSW to be the exclusive agent for next phase of the Millers Point historic home sales. McGrath will market 175 dwellings, including lofts and apartments, blocks of units and other residences, estimated to be worth more than $200 million.

McGrath said, “The appointment is an exciting milestone for our company to continue to represent Property NSW in their sales program at Millers Point.”

The Millers Point properties will be marketed by Richard Shalhoub of McGrath Edgecliff, who will continue to be supported by agents Peter Starr, Lorraine Crawford and Andrew Stewart.

Shalhoub said “The success of the terrace home sales program to date has demonstrated the demand for properties within Millers Point.”

McGrath has achieved a 100% clearance rate for the Millers Point properties to date, with 56 properties selling for a total $166,847,000.

McGrath shares last traded at $1.04, almost half the company's $2.10 IPO price.