www.run.com.au

Frank Cicutto (ex NAB) is chairman of Run Property.
they are positioned to facilitate change in the property management sector.
They are acquiring rental rolls accross the country.
they will manage properties on behalf of landlords from a centralised call centre.

WHat is the consensus ?
Will this type of business succeed ?
will it overhaul prop mgmt as we know it or be a fizzer ?

I believe that John McGrath has sold part of his rent roll to this company.

Shares are available via the PDS however i am still not convinced that the concept will work.

NickM

 

They must have people on the ground to do inspections, hand out keys etc?

But the admin, repair reporting, rent collection is easily centralised I imagine.

Cheers,

 

Hi Nick,

I didn't read the prospectus but the words "bringing together Australia's leading real estate agents" implies some sort of hook up with existing agents who would already have property managers. This could be some sort of sub-franchise arrangement. The focus seems to be on back office admin, which in not always a strength for property managers, so it could be a good thing. It will be interesting to watch it's progress.

Any opinion on what influence there might be on management fees if one player begins to dominate this quote "cottage industry" unquote? Efficiency vs monopoly?

Cheers, Dave

 

I make no comment on the float, but I think the prospectus is a useful read for all property investors for its commentary on the rental market and the collection of a variety of interesting stats about the rental market.

Cheers
N.

 

So how do we get a hold of a prospectus, Nigel? Any quick links for us?
I can see the benefits of a centralized system, as it would save an enormous amount of time for PM's doing all the stuff they hate- paperwork statements, end of yr financials etc.
Will be interesting to read more....

 

run.com.au

Jacque,
You can go to www.run.com.au
follow links from about RUN and Investor Relations and you can download prospectus
Regards
Denis

 

Wow! Now that was fast
Thanks Denis!

 

run.com.au

Jacque,
If it is successful ,l'd wish l was involved.I have no involvement ,just a great interest in the concept.I know a couple of the directors whose Melbourne firms have sold their rent roll business into the float.They have been exceptionally successful over the past twenty years and l consider them to be very astute.
l agree with Nigel.The prospectus provides excellent information and diagrams
about the overall industry.This is free information and it must be fairly accurate to pass legal scrutiny for inclusion in a public float.
When l rang for the prospectus,the broker told me l would have to apply
within 24 hours as the float was closing seven days early and would probably
be oversubscribed.They were seeking 15- 20 million dollars and were issuing
$1 shares.Obviously a lot of interest.
Regards
Denis

 

But then he would say that wouldn't he? scuse my cynicism!