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Adelaide-based Axiom Properties (ASX: AXI) has announced the acquisition of all shares in ListSure, a real estate funding solutions business for owners, investors and agents that has originated more than $37.5 million worth of loans and facilitated more than $11.5 billion in underlying property sales since inception in 2016.
Co-founded in Sydney by Brad Melman and Shaun Leveton, the latter having also founded PetSure Australia, ListSure's proprietary credit decision, loan origination and loan management platform has attracted leading real estate industry clients from McGrath to Raine & Horne to Belle Property.
The purchase price of $2 million is roughly two-thirds of ListSure's forecast revenue of $3 million for the upcoming financial year, and the buyers have a bullish forecast that EBIT is projected to grow to $8 million by year five after the acquisition.
The acquisition sum appears to be less than half the amount paid for ListSure shares by its investors, according to Australian Securities and Investment Commission (ASIC) records, including leading insurance broker Steadfast Group (ASX: SDF) which has a substantial share and is one of the company's leading industry partners.
Axiom, which has a property development arm and an investment division, notes key ListSure employees including managing director Brad Melman have been retained to ensure smooth ongoing operations and effective management of risk and compliance obligations.
"We see this ListSure acquisition, with its best-in-class, proprietary technology platform and credit-decisioning capability, as a key piece of Axiom’s strategy to achieve significant cut-through into the real estate payments sector," says Axiom managing director Ben Laurance."
"Our goal is to provide a unique, embeddable payments and lending solution to our customers, with a quality, market-leading user experience.
"This acquisition is highly complementary with our AXIPay capability, which has given us a beachhead position in the rent roll payment sector."
The deal, funded by a combination of balance sheet capital and an unsecured loan facility, marks the second since industry veteran and former Domain Home Loans CEO Rob Towey was appointed head of Axiom's prop-tech division in August.
When Towey joined this division had a portfolio of just two companies - Point Data Holdings and Openn Negotiation, the latter now under voluntary administration since May.
The first prop-tech investment on Towey's watch was a strategic investment of $1.5 million via a convertible note in Realty Assist Australia, a rapidly scaling property technology company founded in 2021 that offers comprehensive invoicing, payments and cashflow solutions to real estate vendors, buyers and agents.
Towey will also join the board of ListSure, providing expert support as well as governance oversight. Both he and Melman will be responsible for driving the revenue side of the business through agency channel distribution and other key relationships.
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