Mortgage Choice is close to acquiring the LJ Hooker real estate agency network from Suncorp Metway for between $60 million and $70 million,
The Australian reported. Australian Finance Group was the underbidder according to the newspaper.
LJ Hooker contributed $3 million to the December 2008 half year profit of Suncorp, $6 million in the June 2008 half year and $8 million in the December 2007 half year. Suncorp does not record the book value of the LJ Hooker business in its annual report, having bought the network more than 15 years ago.
LJ Hooker has around 700 franchised outlets. The agencies appear to have been a poor source of new home loan business for Suncorp, and presumably Mortgage Choice considers that it will be possible to generate more leads for its own network of loan writers.