Estate agency and insurance group, Countrywide Assured, has made a substantial investment in Teramedia, in order to boost the conveyancing groups electronic sellers pack initiative.
Teramedia, which was set up by KPMG Consulting and Intergraph UK, is developing electronic conveyancing techniques for the whole conveyancing and estate agency market, in an effort to speed up property transactions.
The investment which represents a 4.7% equity share in Teramedia will enable the group to develop its planned scheme to deliver sellers packs to the industry through an electronic means.
Teramedia chief executive, Steven Foster, said: “Teramedia has worked hard over the past two years to design and create a system which removes the stress from the house buying and selling process. Through this investment we will be able to develop our services more quickly, and deliver real benefits to both the property professional and the consumer.”
Countrywide plans to work closely with Teramedia to develop the procedures.
Chief executive at Countrywide, Harry Hill, said: “We recognise that seller’s packs will make a dramatic difference to the way people buy and sell houses, and we need a system to produce them. Countrywide sees itself at the forefront of how the process will change over the next few years.”
Teramedia which will maintain its independence from Countrywide, hopes to become the countrys leading facilitator of sellers packs when they become compulsory in 2003.
The announcement was made in tandem with the publication of Countrywide’s results, which revealed a 26% drop in pre-tax profts. The company blamed a downturn in the housing market for the fall.
For the year to December, the group netted pre-tax profits of £55.7m compared with £75.6m in 1999. The estate agency division saw a 4% drop in turnover to £169.5m and a halving of profits from £11.8m to £4.9m.
Profits from Countrywide’s professional and commercial division fell 79% from £8.2m to £1.7m.
Chairman Christopher Sporborg said: “After the record results achieved in 1999, 2000 proved to be a difficult and rather disappointing year. The sharp downturn in the housing market in the second quarter hit our estate agency and surveying businesses.”
References: EGi News 08/03/01
