Foxtons has this morning announced the acquisition of two smaller agencies to expand its lettings portfolio.
It has bought Gordon & Co in south London; and Stones Residential in the north of the capital.
Both have strong lettings businesses that together generate over 80 per cent of their total combined revenues from lettings services across 2,500 tenancies.
Nic Budden, Chief Executive Officer of Foxtons, comments: “Acquiring Gordon & Co and Stones Residential is a great opportunity for Foxtons to expand our coverage and reinforces our position as London’s largest lettings agent.
“We look forward to welcoming the teams to the Foxtons Group. Since 2019, we have acquired six lettings portfolios and grown our tenancies by 40 per cent which demonstrates good progress against our strategy to generate attractive returns for our shareholders.
“We now serve over 27,500 tenancies, which alongside financial services, deliver resilient and recurring revenues and represent around 70 per cent of our Group turnover.”
Gordon & Co is being acquired for £8.35m; £1.5m is deferred for a period of 12 months subject to the business achieving certain performance targets.
Stones Residential is being acquired for £2.2m; in this case £0.2m is deferred for a period of 12 months subject to the business achieving certain performance targets. Stones Residential’s unaudited revenue for the 12 months ending 31 December 2021 was £1.3m.