You may have hear months ago that the Commonwealth Bank disclosed in a statement to the ASX that it has purchased Property Exchange Australia Limited (PEXA) in a shared bid with Morgan Stanley Infrastructure Partners and Link Administration Holdings Limited.
PEXA is a web platform that helps users with lodging of documents to Land Registries and electronic financial settlements on property matters.
Per PEXA’s website, it has handled over 1.7 million transactions valued at a total of $237 billion. The company was established in 2010 “to fulfil the Council of Australian Governments” (COAG) initiative to deliver a single, national e-conveyancing to the Australian property industry.”
PEXA has 7,581 members comprising of real estate agents, as well as actors related to the property transaction process such as lawyers, conveyancers, developers and financial institutions.
PEXA’s shareholders officially approved the joint bid in November 2018, having been first filed in October 2018 and then augmented on 5 November 2018.
The deal calls for CBA to inject $50 million into PEXA and acquire a 16% equity share in the company, upping its current share in the company of 13.1%
According to Commonwealth Bank’s CEO, the move is an indication of its confidence in the Australian property sector.
The completion of the deal still depends on several conditions being met, but it is expected to be be finalised by the end of 2018.
Many of the conveyancers and solicitors One Agency Pinkerton Properties find themselves working with are now using PEXA. It certainly streamlines the process and we receive the ‘Order on the Agent’ much faster enabling us to had over the keys to the purchasers sooner and pay the deposit held to the seller too.