Aussie real estate tech company PropTech Group (ASX: PTG) could have a second contract with international realtors within a month, having confirmed discussions with Harcourts International for a deal that would see PropTech’s software rolled out across Australasia.
The Letter of Intent signed, proposes that PropTech’s VaultRE platform would become the only endorsed CRM across Harcourt’s Australasian network. Such a move would be the first time Harcourts has addressed its CRM needs and functionality since 1998 when the real estate agency chain adopted Harcourts One (H1).
“It is a great honour to be given the opportunity to partner with Harcourts. The PropTech Group’s mission is to streamline inefficient workflows in high-performing real estate agencies by investing in product improvement, rapid innovation, and AI solutions,” said PropTech CEO, Joe Hanna.
At this stage of non-binding discussions, any likely deal would involve an enterprise contract covering more than 600 Harcourts offices in New Zealand and Australia, as well as Harcourts being issued PTG shares in exchange for the legacy H1 platform.
Established in 1888, Harcourts is the largest real estate group in New Zealand and rapidly growing in Australia. Although not included in the current Letter of Intent, Harcourts also has more than 300 other offices in South Africa, Indonesia, Fiji, China, Canada and the United States.
Should they be successful in securing a partnership with Harcourts for endorsement of VaultRE across Australia and New Zealand, PropTech would service approximately 34% of the ANZ market. Having last month signed Ray White – the largest franchise group across ANZ, the addition of Harcourts would mean the two largest real estate franchises in the ANZ region both use VaultRE.
The next step in negotiations will be meeting on terms for a binding agreement, followed by due diligence. Should these be completed without any hiccups, PropTech is hopeful of the deal being confirmed by mid-April 2021.
For the Half-Year ending 31 December 2020, PropTech reported $5.03 million in revenue which delivered $522k net profit after tax.
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