Why the PropTech (ASX:PTG) share price is soaring 18% today

The PropTech Group (ASX: PTG) share price has surpassed its all-time high after the company announced details of a potential new agreement.

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PropTech Group Ltd (ASX: PTG) shares have reached an all-time high after the company advised it has signed a letter of intent with Harcourts International.

At the time of writing, the PropTech share price is soaring 17.65% to 50 cents. In earlier trade, the company’s shares reached an intraday high of 54 cents, surpassing their previous all-time high of 52 cents reached in December last year. 

PropTech Group provides a range of property analysis technologies, sales management and software-as-a-service tools targeted at property investors and real estate agencies across Australia, New Zealand and the United Kingdom. Its brands include MyDesktop, VaultRE and Real Estate Investar.

Let’s take a look at what the company announced today.

Potential deal with Harcourts

The PropTech share price is on the rise after the company declared this new deal, if successful, will see the VaultRE product on track to cement “its position as the clear market leader” in the ANZ region.

In its announcement, PropTech advised that Harcourts is the largest real estate group in New Zealand and is also growing fast in Australia. It makes up the second-largest property franchise group in the Australia/New Zealand region. 

If the agreement is successful, Harcourts would join Ray White and Raine and Horne in using VaultRE, PropTech’s CRM software. Together, the companies make up Australia and New Zealand’s three largest franchise real estate groups.

Harcourts has proposed that VaultRE will be the only CRM software endorsed across its Australasian network.

The agreement would see PropTech taking control of Harcourts’ existing proprietary software. Then, while providing support across both platforms, transitioning Harcourts’ 600 Australian and New Zealand offices onto its VaultRE software.

Management commentary 

Joe Hanna, CEO and Managing Director of PropTech Group, said the company is honoured to potentially work with Harcourts:

The PropTech Group’s mission is to streamline inefficient workflows in high-performing real estate agencies by investing in product improvement, rapid innovation, and AI solutions. We look forward to bringing our market-leading tools to the Harcourts’ network to migrate their 600 plus offices in New Zealand and Australia to the VaultRE platform.

PropTech share price snapshot

The PropTech share price was out of action for most of last year, having entered a voluntary trading halt in early March and resuming trading on 24 November 2020. Since resuming trade, PropTech shares have surged by nearly 80%. Currently, the PropTech share price is also up by around 19% year to date.

The company has a market capitalisation of around $23.7 million with approximately 122 million shares outstanding.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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