Business
Brookfield Real Estate Services Inc. Announces Assignment of Franchise Agreements and Ancillary Revenue Streams, and Rebrand to Bridgemarq Real Estate Services
Brookfield Real Estate Services Inc. Announces Assignment of Franchise Agreements and Anci...
About this update from Bridgemarq Real Estate Services, Inc.
[{"type":"text","content":"\n\n\n\nBrookfield Real Estate Services Inc. Announces Assignment of Franchise Agreements and Ancillary Revenue Streams, and Rebrand to Bridgemarq Real Estate Services\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, Jan. 3, 2019\n\n\n\nTORONTO, Jan. 3, 2019 /CNW/ - Brookfield Real Estate Services Inc. (the \"Company\") (TSX : BRE) announced today that it has approved the assignment of certain franchise agreements and ancillary revenue streams from Brookfield Real Estate Services Manager Limited (\"the Manager\"). The Company is also pleased to announce that it has commenced doing business as Bridegmarq Real Estate Services, effective immediately.\nAssignment of Franchise Agreements and Ancillary Revenue StreamsAs announced on November 7, 2018, the Manager has completed the assignment of certain franchise agreements, as well as a number of contracts associated with ancillary revenue streams, to the Company at the cost of $1. The franchise agreements transferred represent annualized royalty fee revenues of approximately $0.9 million from 489 REALTORS®1 across Canada operating under the Royal LePage and Via Capitale brands. Under the terms of the recently amended Management Services Agreement (\"MSA\"), the Company, through its operating subsidiaries, will directly enter into new franchise agreements with franchisees as of January 1, 2019, allowing the Company to earn revenue from these agreements from their inception.\nThe contracts associated with ancillary revenue streams will be for the benefit of the Company effective January 1, 2019. These ancillary revenues include mortgage referral fee revenues, commercial franchise fees and lead management support services. In 2017, the Manager earned approximately $3.3 million from these ancillary revenues, net of direct costs.\n\"We are excited about the growth opportunities provided under the amended management services agreement,\" said Phil Soper, president and chief executive officer, Bridgemarq Real Estate Services. \"This new revenue stream is a material gain for the Company today, and ...