Leading independent real estate firms, Gorman Commercial and Allard Shelton, have completed a merger to form the largest privately-owned practice in Victoria with $5 billion in assets under management.
The merger, effective 1 July 2022, sees one of Metropolitan Melbourne’s best-known and fastest- growing firms (Gorman Commercial) join forces with the state’s oldest and most trusted commercial real estate brand (Allard Shelton, established in 1884). Gorman Allard Shelton will boast a formidable commercial property sales and management portfolio, including:
• $5 billion of properties under management;
• in excess of 3,500 tenancies under management; and
• a staff base of 70 commercial real estate specialists across two Melbourne office locations.
Gorman Allard Shelton Managing Director Stephen Gorman said the merger marked a quantum leap for both firms.
"Both businesses have always had a clear desire to boost our market share across sales leasing and asset management and this gives us the perfect vehicle to continue to do so,” Mr Gorman said.
“We are also united on an aggressive plan for further growth and we’re well-positioned for acquisitions of aligned agency practices and the purchase of commercial rent-rolls. “We understand the opportunity this merger creates for the firm and our clients – association with CBD-based Allard Shelton will complement hugely our specialisation and market standing across Metropolitan Melbourne.”
“The coming together of two leading market players creates a complete value proposition for vendors, buyers, and tenants,” Mr Gorman said.
Allard Shelton Director Joseph Walton described the deal as a “winning proposition and a vote of confidence in the modern-day commercial real estate sector”.
“Gorman Allard Shelton will comprise the most experienced operators with the deepest local knowledge of their respective markets. And, as we look forward, we expect to be able to attract more of the sector’s best agents who are looking to join a competitive and contemporary private practice that puts its people and clients at the centre of everything it does.” Mr Walton said the merger would disrupt the market status quo by creating a genuine alternative to the large national and global players.
“This announcement arrives at a buoyant time for the commercial real estate sector. Victoria’s economy is rebounding and while there are myriad market influences in play, including rising interest rates and inflation, we expect commercial transactions and tenancies to deliver strong value for the short and longer term.”
Gorman Commercial (Hawthorn) and Allard Shelton (Melbourne CBD) employees will continue to operate out of existing offices following the 1 July merger. The firms’ existing digital assets will merge under gormanallardshelton.com.au from 1 July 2022. Staff and clients of the two organisations were informed of the merger on Tuesday 21 June, with a new brand mark revealed:
