The Agency Group hires Canaccord Genuity and BDO
Real estate developer The Agency Group has hired consultants from BDO and Canaccord Genuity to help the firm come through the current crisis and future-proof its financial business model.
With a team of over 350 professionals active in the real estate markets of New South Wales, Queensland, Victoria and Western Australia, The Agency Group is one of Australia’s largest real estate agents serving both the commercial and residential sectors.
The group has however been hard hit by the covid-19 outbreak, which has plunged Australia’s real estate market into a near standstill. As a result, The Agency Group is struggling to maintain its cash flow and repay its debts, having already faced three consecutive half-yearly losses before the pandemic’s outbreak.
To support its financial restructuring plans, the agency hired Canaccord Genuity, a Canada-headquartered financial services firm. Canaccord Genuity’s first move was to reschedule a $12 million debt repayment with Macquarie Bank (originally due on 31 March) to 30 September. To reflect the onset of the Covid-19-induced downturn, the corporate advisory consultants also negotiated a new loan-to-value ratio.
As part of the debt restructure, Canaccord Genuity secured a $1 million investment from Peter Investments to beef up its working capital buffer, through a convertible note subscription. Peter Investments is a private investment company owned by Bob Peters, a notable Australian horse breeder.
Paul Niardone, the Managing Director of The Agency Group said: “To have secured the support of Peters Investments, together with our debt repayment extension, ensures The Agency has the financial support to continue its growth plans.”
Meanwhile, The Agency Group is setting its sights on the future. With the financial backing of Peter Investments, consultants from BDO have been brought on board to prepare its financial model for a rebounding economy and a different post-covid-19 world. “This work will help ensure that we are best prepared for the post Covid-19 rebound and our continued growth plans,” said Niardone.
