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HUMM GROUP LIMITED — Capital/Financing Update 2015
Nov 1, 2015
65078_rns_2015-11-01_2aa35104-bd94-4821-a8a0-c451e028d085.pdf
Capital/Financing Update
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ASX Announcement
2 November 2015
RENT.COM.AU EXTENDS STRATEGIC ALLIANCE WITH CERTEGY BY 5 YEARS
Rent.com.au Limited (ASX: RNT ) ( “RENT” or “the Company” ), Australia’s leading rental property web portal, has signed a 5 year agreement with Certegy Ezi‐Pay Pty Ltd (“Certegy”), a division of diversified financial services group FlexiGroup (ASX:FXL), a member of the ASX Top 200.
The new agreements extend the relationship developed between the two companies over the past 2 years, and reflects both parties’ outlook for the strong commercial potential of RENT’s innovative RentBond product to the Australian rental market.
Highlights:
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5 year extension to the mutually exclusive RentBond Service Agreement to November 2020;
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Enhancement of the RentBond offering to facilitate greater ease of use by property agents;
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5 year Marketing Agreement to facilitate the marketing of other Certegy and partner product offerings to RENT’s customers; and
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Significant opportunity for revenues for RENT from both agreements.
Extension of Service Agreement
RentBond is a direct debit payment plan that allows renters to apply for RentBond online in a matter of minutes and, if successful, have their bond paid upfront and then they can repay the bond over 3‐6 months, all for a fixed fee with no deposit payable and no interest ever. This provides renters with an immediate cashflow benefit as it reduces the financial burden of having to pay the high upfront bond and other moving costs. Moving is an expensive and stressful time for renters particularly as their bond is often still tied up in the previous rental and needing to pay a new bond and other costs to secure their new rental.
Since the national launch of this product in February 2015 there has been strong interest in RentBond from renters and property agents alike. As a result, the initial Service Agreement between RENT and Certegy for the financing and servicing of the RentBond product has now been extended for a further 5 years, on a mutually exclusive basis, until November 2020 as both parties maximise the benefits under this arrangement.
In addition, several key new process measures will be implemented as a result of this agreement, leading to much shorter durations between application for and fulfilment of the RentBond contracts and a better experience for property agents and renters. While the online application remains fast and easy to use, the fulfilment process has been greatly improved. Previously, upon approval of a RentBond, it could take days for the property agent to receive a bond cheque from Certegy via mail. As a result of significant changes agreed between RENT and Certegy, fulfilment is now even faster and smoother with payments made directly to a property agents trust account via electronic funds transfer.
New Marketing Agreement
Alongside the new Service Agreement, the parties have also entered into a 5 year marketing agreement whereby offers from Certegy and it’s partners would be marketed to RENT’s customer segments of renters, non‐agent landlords and property agents.
Similar to the provisions under the RentBond Service Agreement, RENT will receive a rebate at cost to Certegy for each successful lead provided. Certegy partners include a range of well‐known retailers,
providing renters and non‐agent landlords with a cashflow favourable solution for furnishing or equipping their rental properties.
Outlook
RENT Managing Director, Mark Woschnak, said: “RENT provides great products to its customers directly and via deep partnering agreements with strong partners, such as Certegy. These products with Certegy reinforce our long term objective of making the entire renting process easier, through the provision of relevant and timely products to all participants in the rental marketplace.”
Mr Rob May, the Managing Director of Certegy Ezi‐Pay, said: “these agreements allow us to build on our relationship with RENT and on the valuable services we provide to its expanding renter customer base of around half a million renters a month, joining the 1.4 million Australians who have used Certegy Ezi‐Pay services.”
ENDS
Further information: John Gardner / Peter Kermode, Citadel‐MAGNUS +61 8 6160 4900
ABOUT RENT.COM.AU
Rent.com.au is the only national web portal in Australia that focuses entirely on the property rental market and includes listings from both property agents and non‐agent private landlords. Rent.com.au was established in 2007 by experienced real estate and new media entrepreneur Mr Mark Woschnak, who has more than 25 years’ experience in real estate, digital publishing and classified services.
Since inception, Rent.com.au has focused on the development of the necessary technology, product alliances and critical mass of content to be ready to fully commercialise the platform. It is now a top 10 national property website and has recently listed on the ASX following a successful capital raising. The capital raised will be used to commence commercialising the site by deploying a national marketing campaign to increase traffic to the site and agent listings content, as well as commence shifting the large volume of offline non‐agent landlord listings to online at www.rent.com.au.
ABOUT CERTEGY EZI‐PAY
Operating since 1989 and part of the ASX listed FlexiGroup Limited, Certegy Ezi‐Pay is a leading provider of continuing credit retail payment plans with No Interest Ever! Offered through a wide network of retailers, its payment plans are a convenient way for consumers to make purchases at a wide variety of retail and home improvement businesses across Australia.
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