Hersing ERA up for sale:leaving the property party early
Hersing Corp is looking to sell its Asia-Pacific franchise for ERA Real Estate agency for up to S$200 million. Hersing was delisted last year for about 170 million, so if it can sell ERA franchise rights for 200 million, the boss will recoup his money and still has some other business intact.
As you know, interest rates will rise in next 2-3 years time, thus property prices can’t keep going one way up. With cooling measures in place, ERA has seen a drop in business volumes, if property prices come down, although volume may go up but commissions will dip.
Leaving the property party early is indeed a wise choice.
Entry filed under: Watch your step.