TORONTO, Cananda – Brookfield Real Estate Services Inc. (TSX:BRE) says it has acquired franchise agreements for 20 brokerages operating under the Royal LePage and Via Capitale brands.
The company will pay $6.1 million for the agreements, which represent offices with a total of 493 realtors.
Nineteen of the brokerages operate under the brand Royal LePage, with an estimated annual royalty of $900,000. The remaining Via Capitale brokerage is expected to generate $30,000 of annual royalty.
The company says the majority of the acquisition — $5.6 million — will be paid Jan. 1, 2014, with the remainder due at the end of next year.
Brookfield Real Estate Services generates revenue from franchise royalties and services fees operating under the Royal LePage, Via Capitale, and Johnston & Daniel brand news. It is a publicly traded subsidiary of Toronto-based Brookfield Asset Management (TSX:BAM.A), which is primarily focused on real estate, electricity generation and the forestry sector through its holdings.