APAC Realty Limited (“APAC Realty”, the “Company” or together
with its subsidiaries, the “Group”), a leading real estate services provider which operates a market-leading real estate brokerage in Singapore under the ERA brand, announced that it had today entered into a ERA Master Franchise Agreement (the “Agreement”) with ERA Laos Co. Ltd. (“Franchisee” or “ERA Laos”).
Under the Agreement, ERA Laos is granted exclusive rights to operate or grant memberships for the operation of ERA member broker offices in Laos. The Agreement is for an initial term of 25 years
commencing from 21 March 2023, and may be renewed for a further 25 years subject to the fulfilment of certain conditions as set out in the Agreement.
The Group possesses the exclusive ERA regional master franchise rights to 17 countries and territories in Asia Pacific. With the addition of Laos, the Group now has a network of more than 21,900 agents in 647 offices across 11 countries and territories.
“We are delighted with our foray into Laos through a franchise model as it deepens our foothold in the Indochina Peninsular and advances our strategic regional growth plans with a capital-efficient approach.
We have every confidence in Ms Manisone Saysompheng, CEO, ERA Laos, and her capable and experienced team as they endeavour to deliver quality growth in the post-pandemic era,” said Mr Marcus
Chu, CEO, APAC Realty Limited.
The Laos real estate market is in the early stages of development and its potential is underpinned by strong foreign investment, especially from its largest investor, China which invested US$2.5 billion in 20211.
The recently launched US$6 billion China-Laos Railway which connects Kunming with Vientiane continues to stimulate economic activity and influence the valuations of real estate.
“With the government amending its laws to permit foreign ownership of condominiums, market watchers believe Laos will be the next property hotspot in the Indochina Peninsular. Our entry into Laos is timely as there are very few real estate brokerage agencies in the country. Backed by over 40 years of success in Singapore and the region and an established brand name, we are well positioned to help elevate the standards and professionalism of agents in Laos,” continued Mr Chu.
“We are enthused to be a part of the ERA family and the agency of choice around the world. As ERA Laos, we are able to leverage the Group’s proven agile business model and established training programmes which continue to be underpinned by ERA’s leadership in technology, innovation and customer engagement. Backed by a strong brand name and an enlarged Asia Pacific network, our agents will be
able to deliver bespoke advice and quality service to homeowners and buyers,” said Ms Manisone Saysompheng, CEO, ERA Laos.
ERA Laos is based in the city of Vientiane, the capital and largest city of Laos with a population of close to 975,000 Laotians. The agency has a headcount of 15 salespersons as at 21 March 2023 and has set
an aggressive target to grow its sales force to 300 salespersons by end-2025.
With the latest foray into Laos, APAC Realty now has a strong presence in four of five countries in the Indochina Peninsular: Thailand, Vietnam, Cambodia and Laos. These economies are expected to register growth of between 3.10% to 6.20% in 2023, driven by strong domestic consumption underpinned by a relatively young population of 194.2 million.
