High-profile real estate agent John McGrath is considering a float of his agency and property business with talks understood to have been held with at least one investment bank.
Discussions had taken place with JPMorgan and possibly other investment banks on an initial public offering of the McGrath Estate Agents business, however, no appointment had been made, according to market sources.
McGrath chief operating officer Geoff Lucas said the company was considering all options to further grow the business for the benefit of customers and stakeholders. “Listing is one of several options that the McGrath board is exploring and (is) yet to determine as the company continues its expansion.”
Mr Lucas declined to comment further, but sources said consideration of a listing was at an early stage and McGrath may pursue other growth options. McGrath would not be alone among the real estate agency groups in having looked at floats over the years. The once-listed LJ Hooker, privatised in 1989, has considered the public bourse under the chairmanship of former Mirvac managing director Greg Paramor.
Mr McGrath started the company in 1988. Its website says more than $10.1 billion of residential property was sold in the year to June 30, with 3334 properties selling for $1 million or more. In September last year, the company launched a China desk for Asian property inquiries. Earlier this month, Mr McGrath told The Australian he was keen to expand nationally.
The group has about 61 offices in NSW, southeast Queensland and the ACT. Most of the offices are franchises with about 10 owned by the McGrath business.
The McGrath group also includes an extensive rent role — its property management business — and a home loans business.