APAC Realty Extends Direct Control over Franchises in Indonesia and Thailand
12 Feb 2019 - APAC Realty, the parent company of real estate agency ERA Realty Network in Singapore, will acquire the master franchisor of ERA Indonesia and take direct ownership of ERA Thailand.These regional expansions follow APAC Realty’s moves in establishing a foothold in China, Cambodia and Vietnam last year.
The company has partnered with current ERA Indonesia CEO Darmadi Darmawangsa to fund the purchase of the master franchise operations from its current stakeholders, PT ESA Realty Aditama and Moedjianto S Tjahjono. APAC Realty will lend up to $13.85 million for this acquisition. The amount comprises a convertible loan of $4.42 million and a conditional sales and purchase agreement (CSPA) of $9.43 million. The CSPA also includes a 4,664 sq ft office space in Tanah Abang in Central Jakarta.
In Thailand, APAC Realty has also entered into a cooperation agreement with Voradet Sivatachanon, who is CEO and managing director of ERA Franchise (Thailand) Co. Two new entities, APAC Holding (Thailand) Co and ERA Holding (Thailand) Co, will be formed to hold the master franchise rights for Thailand. This direct ownership will enable APAC Realty to be more strategically involved in developing ERA’s business in the country, the company says.
APAC Realty’s subsidiaries ERA Singapore and ERA Thailand will be able to tap into cross-selling benefits as the new operational structure will allow sales agents to work together to market and sell overseas properties to their customers. ERA Thailand comprises about 400 agents and records about 1,000 transactions per year on average. Meanwhile, ERA Indonesia has about 6,900 agents across 103 offices, and the company recorded IDR 10 trillion (about $965.91 million) of transactions in 2017.