Elders explains expansion strategy after Tasmanian real estate move

The Adelaide-headquartered company told shareholders today it had now completed 11 bolt-on acquisitions this financial year.

The latest buy is IPST Holdings, the group which operated Knight Frank Tasmania until this week.

IPST is one of Tasmania's largest, full service, privately owned real estate networks.

Knight Frank's existing team of more than 120 people have joined Elders from this week across five locations in Hobart, Kingston, Launceston, Devonport and Swansea.

No purchase price has been given to shareholders with Elders managing director Mark Allison informing the ASX today (Thursday) the buy is confidential and is being funded by "existing debt facilities".

"This acquisition cements Elders' position in Tasmania from a small presence in 2014 to a key player in all parts of the real estate and agricultural sector in 2024," Mr Allison said.

Shareholders were told in the past three years, IPST had generated on average $18.5 million in gross sales commissions, $6.5 million in property management income and $1.1 million in valuation fees.

Included in the acquisition is a rent roll of more than 1500 properties, 40 sales agents and four valuation specialists.

Elders' chiefs yesterday said the company "has been relentless in its pursuit of growth through its franchise network and acquisition strategy."

The biggest of those has been Elders' push into western Victoria late last year with the purchase of the century-old Charles Stewart network.

Elders also added six locations in NSW's Central Tablelands with the Emms Mooney buy earlier in 2023.

As well Elders bought a stake in leading farm services group PGG Wrightson in New Zealand in late 2022.

IPST has been a Knight Frank franchised business since 1997.

The business will now operate under the Elders brand.

Knight Frank chief executive officer James Patterson said its Tasmania franchise, headed by Scott Newton has been a valued partner.

"Our successful partnership has now come to an end following the acquisition of that business by another brand, and we wish Scott and his team all the best," Mr Patterson said.

Knight Frank and Bayleys have moved to buy McGrath Ltd's ASX-listed real estate group.

"While the proposal is yet to be finalised, if it goes ahead Knight Frank will continue to have exposure to Tasmania's residential market through the strong presence McGrath has in Tasmania, with offices in Hobart, Launceston and Devonport," Mr Patterson said.

"Knight Frank is also currently in discussions with a number of parties to maintain its presence in Tasmania's commercial property sector.

"Knight Frank is committed to our partnerships with our many franchise offices nationally and we continue to look for opportunities to grow our network throughout Australia."