ASX to spend $30m on new e-conveyancing firm

The ASX has announced it will spend $30 million over the next three years to set up an electronic property settlement business with tech company InfoTrack that will compete with sole player PEXA.

The new company, Sympli Australia, is a 50-50 joint venture between ASX and InfoTrack’s parent, Australian Technology Innovators.

Sympli has applied to become an electronic lodgement network operator, and, pending approvals, is aiming to begin operations towards the end of this year.

The two JV partners believe the new business will combine their experience and expertise - ASX’s in secure, electronic financial market settlements and InfoTrack’s in property settlement technology and processes.

“Entering the electronic property settlement market is a natural evolution for ASX,” ASX managing director Dominic Stevens said.

“We already settle approximately $70 billion in transactions electronically every day and have been the central settlement venue for the Australian financial market for decades.

“InfoTrack is the ideal partner as the market leader in legal and property search.

“It has 18 years’ experience and brings a deep understanding of, and connectivity to, the property conveyancing industry.”

ASX estimates that the electronic property settlement industry in Australia is worth about $200 million.

The announcement comes as PEXA, which is the only company with accreditation as a network operator, considers floating on the ASX.   

Investors in PEXA include the WA government, the big four banks, Macquarie Bank, and the NSW and Victorian state governments.

According to its 2016-17 annual report, Landgate is another stakeholder, owning a 12.15 per cent stake in PEXA.

ASX said it would spend $7 million on Sympli in 2018, with further investments in the next two years.

The new company is aiming to break-even in the 2021 financial year.