Bell Financial Group Ltd has established a real estate investment advisory and broking division as the stockbroker with brands such as Bell Potter and Southern Cross aims to expand its services in property investment.

The new division will commence operations on September 1 and will provide research and broking services to clients in the listed Australian real estate investment trust sector, Bell said in a statement on Wednesday.

The company will also offer corporate advice across the listed and unlisted market, with an emphasis on small- and mid-cap funds.

“Bell Potter traditionally has had a limited reach in the property sector,” Bell’s executive chairman Colin Bell said in the statement.

“The establishment of the Real Estate team is a fantastic addition to our capabilities and revenue stream and we believe our timing is ideal for our move into this area.”

Bell’s earnings and share price were savaged during the financial crisis and downturn in equities and the broker is aiming to take full advantage of the recovery.

The broker, which is backed by Swiss banking giant UBS through an 18.6 per cent equity stake, expanded by buying rival broker and research house Southern Cross Equities in September 2008 and now aims to expand its product offering.

The broker said real estate funds were having to revalue down their properties by significant amounts, forcing them to raise equity.

This would provide Bell with opportunities to provide advice and transaction services.

Bell’s profit for calendar 2008 more than halved to $14.4 million while revenue slumped by 30 per cent.

But the fact that the company was profitable was a good result for a financial firm in the worst year for Australia’s sharemarket.

Shares in Bell were flat at 95 cents at 1250 AEST.

The stock has more than doubled from 37 cents on February 11, the lowest close since the company was listed in December 2007 at $2.

Simon Garing, who previously led UBS’s Australian real estate equities division, will lead the equities research at the new division.

Phil Montgomerie will lead the research sales and trading and Damien Cronin will head corporate advisory and transaction support.

AAP