Residential real estate agent LJ Hooker has appointed Lazard to assist with the sale process of the business — but a float of the iconic brand appears unlikely.
The sale process for LJ Hooker comes as another major real estate agency, McGrath Estate Agents, mulls a potential float of all or part of the business on the Australian Securities Exchange as one option for growth.
A sale of LJ Hooker would be timed to take advantage of the red hot property market, with the group having significant exposure to the booming established housing market in Sydney.
LJ Hooker chairman Greg Paramor — who is also managing director of property fund manager and developer Folkestone — confirmed the appointment of the investment bank to manage the sale.
“The sale process should be completed by the end of the year,” Mr Paramor said.
“I don’t think an IPO is appropriate at the present time ... It’s not something we’re pursuing.”
Mr Paramor would not be drawn on the potential price for the company, which is one of the largest real estate agency franchise groups in Australasia with 700 franchises in Australia and in New Zealand. The group also has a growing platform in Asia.
The company is owned by a consortium that includes the grandson of the company founded by Leslie Joseph (born: Tingyou) Hooker — Leslie Janusz Hooker. The consortium purchased the then run-down business in 2009 for $67 million, though with LJ Hooker back to full strength the price tag for the business is expected to be much higher.
“The consortia that was put together five years ago had a three to five-year time horizon on the transaction,” Mr Paramor said.
He said the company had fielded a range of inbound calls from would-be buyers.