The merger will see PropNex having close to 7,000 salespersons. (Photo: Jianwei Huang)
UPDATED: Homegrown real estate agency PropNex Realty announced this morning (12 June) its merger with Dennis Wee Group (DWG), following the signing of a memorandum of understanding (MOU) between the two companies on Saturday.
The addition of DWG’s 1,071 property agents in a bulk transfer will grow PropNex’s team to 6,926 agents from 5,855 previously. The transition is being undertaken with no money involved, and is expected to be completed by the end of next month.
The newly merged company will overtake ERA Realty Network as the largest real estate agency in Singapore. ERA Realty currently represents 6,243 agents.
PropNex’s market share in the Singapore residential sector is also expected to grow from around 40 percent to 50 percent. “With a wider network of salespersons, we are ready to add greater value to property developers in their outreach to consumers, be it in the executive condominiums, mid-tier and luxury segments,” said Mohamed Ismail, CEO of PropNex.
While DWG’s agents are free to apply to another agency, Ismail is confident that 80 to 90 percent of them will join the group.
DWG will remain a division of PropNex focusing on its global investment portfolio, sourcing, securing and investing in key developments overseas.
Dr Dennis Wee, Founder and Chairman of DWG, will work as PropNex’s Senior Strategic Partner. His son Denka Wee will become Strategic Partner to support the process of the new entity.
Commenting on the decision to merge with PropNex, Dr Wee said: “PropNex Realty and DWG share a culture that is aligned, embracing core values that are focused on the highest professional standards, consumer-centric service, innovation and transparency.
“I believe PropNex Realty will provide greater opportunities and long-term growth for our salespersons with its proven track record in the past 17 years.”
In 2016, PropNex recorded $279 million in gross revenue, with an expected turnover of over $300 million in gross commission this year.