Belvoir has announced what it calls “a significant acquisition” by one of its franchisees, which is set to add almost £1m to the revenue of the franchise giant.
The Belvoir Hitchin and Welwyn Garden City franchisee has acquired the book for 624 managed properties within WGC and nearby St Albans.
This will add almost £1m of network revenue and will increase the group’s management service fees - the main revenue stream from its franchisees - by £400,000 in the first six years of ownership.
Belvoir says three other franchisees in Derby West, Hendon and Corby have also recently acquired local lettings portfolios which will add collectively £1m of network revenue and £122,000 of management fees.
The WGC acquisition was funded entirely by the local franchisee; the three others required £193,000 of financial support from Belvoir centrally.
“Our Assisted Acquisitions pipeline remains strong and the Board has set itself the target of doubling the value of such franchisee portfolio acquisitions again in 2018. Our ability to capitalise on the consolidation in our sector is a testament to the Belvoir Group acquisitions team which identify and facilitate such deal opportunities and harness the entrepreneurial spirit of our franchisees" claims Dorian Gonsalves, group CEO.