Nearly 15% of ASX-listed real estate agency McGrath is up for sale

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A group of former real estate agents from McGrath have pooled their shares in the ASX-listed company and put them on the market.

The seven former agents believe they may be able to get a better price by acting together.

According to a coordination agreement filed with the ASX, the group holds 14.66% of McGrath between them.

“The parties agree that they will act cooperatively with each other in their discussions with a view of maximising the price of any sale of shares,” the agreement says.

The seven include agents who broke away from McGrath to form rival The Agency, including Brad Gillespie, Matthew Lahood, Shad Hassen and Stephen Chen.

The company’s recent poor performance recently has been at least partly blamed on the departure of experiences sales agents.

The 2017 full year profit at McGrath fell 42% to $4.871 million. CEO Cameron Judson said the market had been challenging with property listings down 11% and the loss of a number of “high performing” sales agents.

In the latest results announcement, the company didn’t give numbers for sales agents departing. However, in a February update the company said 36 sales agents had left, leaving 225 still with the company.

McGrath, which floated in December 2015, raising $129.6 million, is the only ASX-listed real estate company. Its shares last traded at $0.805, up 2.5% today, but a long way from the IPO price of $2.10.

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