RE/MAX Malaysia looks to triple presence by adding eight branches in 2017
By Tan Ai Leng
Kellerhhof International Sdn Bhd, which owns the master trademark license for RE/MAX Malaysia, is inviting interested investors to join the company through an equity crowdfunding exercise which offers up to 6 percent of the company’s shares to potential investors.
The U.S.-based RE/MAX, LLC, is one of the largest real estate network operators globally, with 7,000 offices and about 110,000 sales agents worldwide. It has a presence in more than 100 countries and territories and expanded to Malaysia early this year through Kellerhof International, which has exclusive rights to operate and open RE/MAX offices and branches in Malaysia.
RE/MAX Malaysia Regional Director Andre Keller said 6 percent of the shares will be divided into 80 lots with an investment fund of RM5,000 each. If all the lots are subscribed, it could raise up to RM400,000, he added. The proceeds will be used as the company’s operational capital. Selected investors could enjoy a minimum 6 percent dividend per year on the invested amount for the first three years.
Every lot comprises 800 redeemable convertible preference shares (RM6.25 per share) that could be converted into ordinary shares of the company after three years. The equity crowdfunding exercise will be unveiled on Dec. 8.
“This is the first real estate equity crowdfunding in Malaysia. Through this programme we hope to let more people know about the RE/MAX brand. We also look forward to inviting real estate investors to join us,” Keller told TheEdgeProperty.com.
“The needs of the new generation workforce has changed. It is very hard for the company to retain talent. Letting the younger generation co-own the company through equity crowdfunding could be a way to retain talent,” he said.
To achieve this objective, Kellerhof International will select the potential investors. “Investment opportunities will be open to all, but priority will be given to investors who are interested to become members or who could create more value to RE/MAX Malaysia,” Keller says. Interested investors can register through the RE/MAX Malaysia website.
According to Keller, RE/MAX Malaysia currently has four branches in Malaysia, one in Johor Bahru and three in the Klang Valley.
“We are looking at expanding in Malaysia by introducing the RE/MAX brand to local real estate agencies and working with them by setting up RE/MAX branches in Malaysia,” he said. The company is targeting eight more branches next year via collaborations with local real estate agencies.