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PropNex strikes master franchise deal in Vietnam, takes 25% stake in franchisee
REAL estate agency PropNex has entered into a master franchise agreement with PropNex Realty (Vietnam) Co to grow its business in Vietnam.
The agreement will give Singapore-based PropNex a 25 per cent stake in the Vietnam franchisee for a nominal sum of US$1.00, the company announced on Tuesday during the midday trading break. The franchise agreement lasts for an initial 10-year term, with an option to extend it for a further 10 years.
The new franchisee occupies a 2,637 square foot office in Ho Chi Minh City and has more than 70 salespeople, PropNex said. PropNex has more than 7,454 salespeople in Singapore, 800 in Indonesia and 100 in Malaysia.
PropNex chief executive Ismail Gafoor said in a statement: "With its growing economy and positive forecast of the real estate market, we believe that Vietnam is an important place for PropNex to establish our brand."
PropNex Vietnam executive director Aidan Wee said: "We chose to pursue PropNex due to its strong brand name as the largest-listed real estate agency in Singapore. Alongside its reputation for professionalism and trusted service, PropNex’s emphasis on the professional and personal development of all its salespersons and employees resonates very well with us."
PropNex shares traded at 58 Singapore cents as at noon on Tuesday, down 0.9 per cent or 0.5 Singapore cent on the day before the announcement was made.