ASX-listed mortgage broker N1 has acquired a Sydney-based real estate business four months after it unveiled the launch of its own real estate arm, N1 Realty.
The acquisition of Sydney Boutique Property, which was established in 2003, will generate “significant profitable revenue” for the real estate arm, which officially commenced trading from 1 July and plans to have its Chatswood-based head office open and operating by October.
Sydney Boutique Property has more than 170 properties under management with a stable pipeline of sales in the McMahons Point area where the agency is based.
The CEO of N1, Ren Wong, said the acquisition is an important part of the company’s strategy to grow recurring income while providing further revenue growth opportunities from cross-sales.
“This expansion of N1 via our real estate business N1 Realty represents an excellent example of our strategy to grow the company via both thoughtful acquisition and organic growth development under the N1 brand,” he said in a statement to the ASX.
The acquisition of Sydney Boutique Property will be partly funded from cash reserves in combination with a loan.
In addition to the real estate acquisition, Wong also announced it has completed the acquisition of an $80 million loan book, comprising approximately 240 established residential Sydney mortgages. Wong said it would boost the group’s annual recurring revenue by approximately $132,000 per annum, brining N1’s total loan book to over $680 million.
“Acquisitions such as this boutique real estate business and loan book bring significant and positive cash flow to our growing business and we are working diligently to ensure every step we take will add value to our company and to our shareholders,” Wong said.
Wong said the company will also “actively seek” acquisition opportunities as a part of its growth strategy.