In a market first, Ray White Surfers Paradise Group (RWSP) has added a management rights (MR) sales arm to their portfolio, with industry leader Craig Cornish taking the helm.
The move is the first time a major real estate player has embraced MR in a meaningful way, pointing to a renewed confidence in the sector after the challenges of the pandemic.
Ray White Management Rights Sales will leverage the mammoth brand power Ray White, an Australian-owned brand of over 120 years.
With more than 1000 offices across six countries, Ray White is the largest real estate group in Australasia, selling more properties than any other agency over the past 30 years. Ray White is the most frequently searched real estate brand on Google, and Raywhite.com is the largest independent Internet site in Australasia with in-excess of 420,000 visitors each month.
Within the Ray White group, RWSP is the largest office in the Ray White network, having sold more properties and achieved more record prices than any other agency in the region.
Greg Bell, Director of RWSP says the addition of an MR arm is an exciting progression in the company’s growth.
“Management rights – essentially a licence to operate the business of caretaking and letting of a new development or existing complex – has become an increasingly buoyant sector of the industry, especially in SE Queensland,” Mr Bell says.
“Ray White Group Chairman, Brian White, has been tremendously supportive of our ambition to enter this field of business as ‘Competition Creators’ – a phrase recently trademarked by Ray White, which encapsulates the value the Ray White brand brings to any transaction – creating a competitive marketplace in order to secure the best price.”
Mr Bell says Craig Cornish was his first choice in heading the dynamic new venture.
“Hailing from a private property development industry background, Craig is one of Queensland’s most respected names in large property-centric transactions including significant residential and retail projects,” Mr Bell says. “He comes with an impeccable background, and extensive contacts. We are very pleased to have Craig join us and lead this new venture.”
Mr Cornish says he is looking forward to building the management rights arm at RWSP and has signed several significant projects already.
“MR has been around for about 35 years, but the market is undergoing significant change,” Mr Cornish says.
“Purchase multipliers have increased significantly in recent years, particularly for medium-to-high-netting MR assets. While at its core MR is still a mum and dad business, this increase in multipliers has seen a broadening in buyer types. Well-known corporate brands, high-net-worth private operators, syndicates, private equity, and international investors are all competing for the biggest and best MRs. Off-the-plan sales have also become highly sought-after, due to the scope for capital growth.”
“MR can be a complicated area, with more moving parts than traditional real estate sales. I make the analogy that residential sales is like a 100m sprint, commercial sales is like a 200m sprint, and management rights sales is an 800m sprint. It takes a lot of dedication.
“This may be the reason the larger real estate brands have avoided taking on MR, because it does require a lot of work and attention to detail.
“Greg (Bell) and I are both excited about the benefits RWSP can bring to the table. Their systems, reach, network and marketing processes are exceptional and will allow us to bring a new level of opportunity to our clients.”
Both Bell and Cornish will be hosting a RWSP booth at the upcoming Australian Resident Accommodation Managers Association (ARAMA) Management Rights Trades and Services Expo on the Gold Coast on September 13.
Head of Management Rights Sales
p. 0414 897 256