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TODAY'S OTHER NEWS

The secret’s out: Franchise giant explains acquisitions success

A series of acquisitions by The Property Franchise Group this year has added over 3,000 managed properties to its portfolio this year and has now set a target of adding an additional 4,000 or more in 2019.

TPFG - owners of Martin & Co, Whitegates, CJ Hole, Ellis & Co, Parkers and EweMove - says it has assisted its franchisees to acquire 16 portfolios and a total of 2,107 tenanted managed properties so far this year.

This exceeds the total for the whole of 2017. 

“We have offers agreed on another 1,139 managed properties, so we should comfortably exceed 3,000 properties added to the portfolio in 2018, and we want to build on this and add another 4,000 in 2019” says Chief executive Ian Wilson.

He says the key to the group’s success has been its help to franchisees to target businesses, negotiate deals and ensure that there is funding for completion. 

“Uniquely we pay cashback to our franchisees to reward them for expanding their business. This is extremely helpful to meet their immediate cash flow demands following an acquisition, as there can be unexpected bills to pay” says Wilson.

“From the sellers’ point of view, they want to know that the deal will go through and that their landlords and staff will be looked after. We can provide that reassurance with our dedicated specialist acquisition team.”

The group’s smallest deal this year has been a ‘bolt-on’ portfolio of 24 properties purchased from Nidderdale Properties in Harrogate. 

The biggest deal was 346 properties purchased from Castle Estates in Sheffield.

“We have bought in every region except London and Scotland, which is frustrating as we have buyers actively looking. A number of the transactions have been share sales which can be tax efficient for sellers as they pay tax as low as 10 per cent on their capital gain.  Four brands have been active buyers so far this year – Martin & Co unsurprisingly the most active, but so too has CJ Hole, Whitegates & EweMove” Wilson adds.

  • Simon Shinerock

    Yes well, all very interesting but small potatoes really and the main risk of these acquisitions is no doubt with the franchisees.

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