Franchise India has acquired 51 per cent stake in property brokerage network RE/MAX India for an estimated Rs 60 crore as it expects huge jump in business with implementation of new real estate law.
Franchise India's real estate arm BusinessEx.Com, has acquired 51 per cent stake in RE/MAX India from Cybiz Realty, its current India Master Franchisee, Franchise India & BusinessEx founder Gaurav Marya said.
The balance 49 per cent stake will remain with Cybiz Realty's original founder and promoter Sam Chopra.
"The enterprise value is above Rs 100 crore. We will be making initial investment of Rs 25 crore. The overall investment will be about Rs 50-60 crore," Maurya told PTI.
He said the company will have controlling stake and it is also bringing technolgies in the joint venture.
"RE/MAX India has 60 offices across the country. We will open more offices," he said.
The new joint entity will now be under the Franchise India umbrella and aims to open 1,000 franchise offices and take the agent count to 5,000 by 2020.
The real estate brokers will have to be registered under the new Real Estate (Development and Regulation) Act, 2016 and this will make brokerage business more organised and professional, Maurya said.
RE/MAX India is part of world's largest real estate network RE/MAX.
"This acquisition allows both the companies to pursue potential near-term opportunities to create additional value through a lot of synergies from each other," Chopra said.
RE/MAX possesses a global network of more than 7,000 offices and 1,10,000 agents in over 100 countries.