McGrath has announced the acquisition of Sotheby's Sydney CBD in a settlement expected to be worth 1.6 million.
McGrath has signalled its intention to harness the growth of the Sydney CBD market and its surrounds with the announcement it will acquire Sydney Sotheby’s International Realty - CBD and Pyrmont.
An agreement to absorb the business was submitted to the ASX, with the total consideration expected to be $1.6 million.
The announcement comes less than two months after McGrath announced it had entered into an agreement to acquire the business and assets of LJ Hooker Willoughby/Artarmon in Sydney’s Lower North Shore market.
In both instances, the owners of the acquired businesses have previously been employed by McGrath.
While in April, John McManus returned to the company, this time it is Richard Shalhoub who is reuniting with his former employer.
Having worked for McGrath between 2007 and 2016, Mr Shalhoub was heavily involved in the company first being appointed by Property NSW in 2014 as their exclusive selling agent for the Millers Point program, as well as the successful Government selloff.
He said his return to McGrath was indicative of a growing desire within the market for small agencies to consolidate so they can focus on servicing their clients and grow market share rather than the day to day running of a business.
"I previously had nine great years at McGrath where I was able to grow my business substantially during that time and developed a great synergy and close relationships that remain today," he said.
"There has been a clear shift in market sentiment and conditions over the past 12 months in the CBD as we have transitioned to a more subdued marketplace.
"As a result, I feel that to best represent our clients we need to be aligned with a respected and dominant brand with strong referral networks."
McGrath CEO Geoff Lucas said Mr Shalhoub's return would complement the company’s presence in a key market that has been serviced by its Eastern Suburbs sales office.
“Richard returning to McGrath is a win-win for us both and is in line with our overall strategy to increase market share in key markets with the recruitment of exceptional agents who have the desire to be part of a well- resourced and well-established brand," he said.
“Not only is Richard an outstanding agent with an unparalleled depth of knowledge of Sydney’s CBD and northern CBD residential precincts, but he also brings with him an intrinsic understanding of the prestige market that has been transformed by the substantial infrastructure, lifestyle and work precincts seen at Barangaroo and Millers Point."
The binding agreement is expected to be completed in early July.
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