Business
REA : adds to commercial lending capability with Simplicity acquisition
REA : adds to commercial lending capability with Simplicity
About this update from Rea Group Ltd
Media Release 10 February 2025 REA Group adds to commercial lending capability with Simplicity acquisition REA Group ("REA") today announced it has agreed to acquire an initial 70% interest in commercial finance brokerage, Simplicity Loans & Advisory ("Simplicity"). The remaining 30% interest will be acquired by the end of calendar year 2029. Simplicity is an award-winning boutique brokerage with a dedicated team of finance specialists focused on commercial lending. It provides tailored funding solutions to Australian businesses and developers across a broad range of sectors including construction, mining and industrial, retail, medical and specialised industries. Simplicity also operates a broker referral marketplace, Marketplace Finance, with leads referred to Simplicity brokers from mortgage brokers. In addition to being a proprietary lead capture and tracking platform, Marketplace Finance offers a leading suite of workflow tools to drive broker productivity. REA Group Chief Executive Officer of Financial Services and Mortgage Choice, Anthony Waldron, said the proposed acquisition was an exciting opportunity to expand REA's financial services offering. "The volume of commercial loans settled by brokers in Australia has increased significantly in recent years. By extending beyond residential lending into the fast-growing commercial lending market, we will accelerate our commercial finance strategy while adding new capabilities and revenue streams. "Simplicity is a great business and has achieved impressive organic growth. We see significant opportunities for integration and future growth by connecting Simplicity with Mortgage Choice and more broadly across the Group. "We believe the proposed acquisition will create exciting opportunities for our Mortgage Choice brokers, with many of their clients already small and medium business owners or commercial property investors. It will strengthen our ability to offer tailored services across both residential and commercial property loans, supporting more Australians with the funding solutions they need. "I'm looking forward to working closely with the Simplicity team as we continue to innovate our financial services offering and deliver more choice and flexibility for our brokers and their clients." Simplicity will continue to operate under its current brand and structure, led by Managing Directors, Jean-Pierre Gortan and Matthew Johnson. Jean-Pierre Gortan said: "We've built our business by helping clients navigate complex transactions with confidence. Partnering with REA gives us the scale, reach and technology to accelerate nationally and cement Simplicity as the most trusted commercial broker in Australia." Matthew Johnson added: "REA is the natural fit for us with many of our existing clients in the property and construction sector. We look forward to working closely with Anthony and the REA team to drive Simplicity's future growth." The proposed acquisition is subject to certain conditions, including regulatory approval, and is expected to complete in approximately two months. -ends- For more information: Kizia Maughan REA Group Head of Stakeholder & External Communications Mobile +61 422 026 230 Email [email protected] About REA Group Ltd ( www.rea-group.com ): REA Group Ltd ACN 068 349 066 (ASX:REA) ("REA Group") is a multinational digital advertising business specialising in property. REA Group operates Australia's leading residential and commercial property websites - realestate.com.au and realcommercial.com.au - as well as the leading website dedicated to share property, Flatmates.com.au and property research website, property.com.au. REA Group owns Mortgage Choice Pty Ltd , an Australian mortgage broking franchise group, PropTrack Pty Ltd , a leading provider of property data services, Campaign Agent Pty Ltd , Australia's leading provider in vendor paid advertising finance solutions for the Australian real estate market and Realtair Pty Limited , a digital platform providing end-to-end technology solutions for the real estate transaction process. In Australia, REA Group holds strategic investments in Simpology Pty Ltd, a leading provider of mortgage application and e-lodgement solutions for the broking and lending industries, Arealytics, a provider of commercial real estate information and technology in Australia and Athena Home Loans, a leading digital non-bank lender and one of Australia's fastest growing fintechs. Internationally, REA Group holds a controlling interest in REA India Pte. Ltd. operator of the established brand Housing.com and Planitar Inc., the maker of iGUIDE, a leading 3D tour and interactive floor plan technology headquartered in Canada . REA Group also holds a 20% shareholding in Move, Inc., operator of realtor.com in the US and a minority interest in Easiloan, a technology platform for end-to-end digital processing of home loans in India. About Mortgage Choice : Established in 1992, Mortgage Choice helps Australians improve their financial situation by otfering a choice of home loan providers from a panel of more than 35 lenders, coupled with expert advice from a mortgage professional. Today, Mortgage Choice helps Australian borrowers source car loans, personal loans, credit cards, commercial loans, asset finance, deposit bonds and general insurance. In 2021, Mortgage Choice was acquired by global digital property business REA Group.