TORONTO, Dec. 8, 2015 /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").
Acquisition of Franchise Agreements
Under the Royal
LePage and Via Capitale brands, the Company will purchase franchise
agreements representing 33 real estate operations and 459
REALTORS®1 across Canada for approximately $6.6 million. These agreements are estimated to
generate an annual royalty stream of $1.0
million and will be effective January
1, 2016.
As outlined in the Company's Management Services Agreement
("MSA") with the Manager, 80 per cent of the acquisition price will
be paid in January 2016 and the
balance paid in January 2017 when the
purchase price is finalized, based on the actual performance of the
acquired agreements.
The payment due January 1, 2016 of
approximately $5.3 million, plus
applicable HST, will be funded through a combination of cash on
hand and a draw down on the Company's debt facilities.
"The Company experienced strong growth in 2015, as high
performing real estate brokers and agents from coast-to-coast
continued to choose our industry-leading brands," said Phil Soper, president and chief executive
officer, Brookfield Real Estate Services Inc. "Our ongoing
commitment to equipping our REALTORS® with the most
innovative and complete suite of business services and tools is
paying dividends, as we continue to enjoy market-leading momentum
and sustained industry leadership."
ABOUT BROOKFIELD REAL ESTATE
SERVICES
Brookfield Real Estate Services Inc. is a
leading provider of services to residential real estate brokers and
a network of more than 16,000 REALTORS®. The Company
operates in Canada under the Royal
LePage, Via Capitale and Johnston & Daniel brands. Further
information is available at www.brookfieldresinc.com
Brookfield Real Estate Services is an affiliate of Brookfield
Asset Management, a leading global alternative asset manager with
over $200 billion of assets under
management. For more information, go
to www.Brookfield.com
1 REALTORS® is a trademark
identifying real estate licensees in Canada who are members of the Canadian Real
Estate Association.
SOURCE Brookfield Real Estate Services Inc.