Peerage Realty is expanding their dominance in the luxury real estate market. The Toronto-based company controls high-end brands such as Chestnut Park Real Estate, and will soon acquire Sotheby’s International Realty Canada as well, according to a press release.
Peerage bought the national franchise rights to Sotheby’s from Dundee Corp. for an undisclosed amount. The deal is expected to close on May 17.
This acquisition means Don Kottick, Peerage’s former executive vice president, will become the president and CEO of Sotheby’s. The role is one Kottick is honoured to have.
“Throughout my career, I have long admired this brand and its rich culture of professionalism, strong marketing, and top-tiered client service,” Kottick said in a statement. “The Sotheby’s International Realty brand is the preeminent destination that attracts some of the best talent in the industry. Moving forward, our focus will be on enhancing agent productivity, client experience, operations and continuing to attract the elite of the industry.”
Toronto Storeys has reached out to Don Kottick for further comment on how the acquisition will change the luxury real estate market.
Although Sotheby’s has 990 offices in 72 countries, the offices aren’t franchised. Instead, they are corporately owned and run, the Toronto Star reports. Peerage’s acquisition is for the national franchise in Canada only, which has annual sales of $5 billion.
Once the deal closes, the company will own 32 Canadian offices in Ontario, Quebec, Alberta and B.C.
Peerage, which has $13 billion in annual sales, has been expanding its luxury real estate brands since it was founded in 2007. In addition to Chestnut Park, the company also owns Baker Real Estate, Fifth Avenue Real Estate, and StreetCity Realty.