The newly appointed general manager for real estate at listed agricultural company Elders, Tom Russo, has been given the task of increasing revenue by between 10 and 20 per cent as competition in the bush heats up.
Rising values, more activity in farm and residential sales as well as new hirings and business improvement initiatives saw Elders real estate division contribute an increased $29.2 million to the company in its last financial results and Mr Russo expects that will continue.
"We are targeting aggressive growth through acquisition of businesses and recruitment of top-quality sales representatives," Mr Russo said.
Previously as the general manager of strategy and business development for Elders, Mr Russo played a pivotal role in devising and implementing the company's overall turnaround strategy.
"Our board has backed a new strategic direction for the real estate business, which is heavily focused around increased growth and a greater brand presence, right across Australia," Mr Russo said.
Elders real estate negotiated the sale of about $890 million in farmland last year and about $3.8 billion in residential properties. It also manages 62,470 properties through metropolitan and rural Australia.
Mr Russo said the existing network of 900 sales people and 300 property managers which covers 279 points of presence across rural and residential agency was a significant advantage over competitors when trading rural property.
"I think our competitors tried to aggressively enter the market with a lot of advertising and the promise of offshore buyers but I don't think they have the scope and the network of local buyers that we have," Mr Russo said.
"We are not just sending out guys in pinstripe suits to do deals in the bush."
Elders real estate recently bought a Toowoomba office in Queensland and will look to the large regional cities where there is strong growth.
"It's an exciting time to be an investor in Australian agriculture as we see a perfect storm of robust commodity demand and prices, excellent seasonal conditions, and low interest rates creating unprecedented interest in quality Australian agricultural assets," Mr Russo said.
The division has also launched a Summer Selling Campaign encouraging vendors to take advantage of the current sellers' market. Mr Russo said that with interest rates remaining on hold and a delay in the usual influx of properties hitting the market over spring the campaign was essential for kick starting what is expected to be a big year in the bush.
