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Brookfield Real Estate Services Inc. Announces Acquisition of Franchise Agreements
Brookfield Real Estate Services Inc. Announces Acquisition of Franchise Agreements ...
About this update from Bridgemarq Real Estate Services, Inc.
[{"type":"text","content":"\n\n\n\nBrookfield Real Estate Services Inc. Announces Acquisition of Franchise Agreements\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, Dec. 8, 2017\n\n\n\nTORONTO, Dec. 8, 2017 /CNW/ - Brookfield Real Estate Services Inc. (the \"Company\") (TSX: BRE) announced today that it has approved the acquisition of certain franchise agreements from Brookfield Real Estate Services Manager Limited (\"the Manager\").\n\nAcquisition of Franchise Agreements\n\nUnder the Royal LePage and Via Capitale brands, the Company will acquire franchise agreements representing 38 real estate operations and 563 REALTORS®1 across Canada for approximately $8.8 million. These agreements are estimated to generate an annual royalty stream of $1.2 million and will be effective January 1, 2018.\n\nAs outlined in the Company's Management Services Agreement (\"MSA\") with the Manager, 80 per cent of the acquisition price will be paid in January 2018 and the balance will be paid later in the year when the purchase price is finalized, based on the actual performance of the acquired agreements.\n\nThe payment due January 1, 2018 of approximately $7.0 million, plus applicable HST, will be funded through a combination of cash on hand and a draw down on the Company's debt facilities.\n\n\"We are very pleased with the strong and consistent growth of our Company's Network,\" said Phil Soper, president and chief executive officer, Brookfield Real Estate Services Inc. \"Our high quality brands enjoy nationwide appeal and geographical diversification, which has certainly helped the business successfully navigate market slumps in Alberta in 2015, British Columbia in 2016 and Ontario this year. The tools, services and support our Brands offer brokerages and REALTORS® position them for success in a highly competitive industry.\" \n\nForward-Looking Statements\n\nThis news release contains forward-looking information and other \"forward-looking statements\". Words such as \"will\", \"estimated\", \"later\", \"growth\" and other expressions t...