SINGAPORE - 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, the company announced on Tuesday (Aug 14) 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 sq ft office in Ho Chi Minh City and has more than 70 sales staff, PropNex said. PropNex has more than 7,454 salesmen 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 cents as at noon on Tuesday, down 0.9 per cent or 0.5 cent on the day before the announcement was made.