This was published 7 years ago
REA buys 80 per cent of mortgage broker Smartline and deepens NAB partnership
By Lucy Battersby
REA Group has spent $67 million buying an 80 per cent stake in mortgage broking franchise Smartline, with plans to launch a new home loan business later this year.
It has also deepened its relationship with National Australia Bank, through which it launched a realestate.com.au-branded home loan in December 2016.
NAB may include its Choice Home Loan broking network in the new REA-owned Smartline network, which currently has 300 advisers around the country and a loan book worth $25 billion.
REA, which is majority owned by NewsCorp, has the option to buy the remaining 20 per cent of shares from Smartline's management team after four years if financial performance hurdles are not met.
"Building a strong presence in the broker market channel is an important part of our financial services strategy," REA Group's chief executive, Tracey Fellows, said in a statement to shareholders.
Shares in REA were trading flat at $65.59 on Tuesday morning. On Friday, its shares reached a record high of $66.50.