Foxtons says the reason behind its purchase of rival London agency Douglas & Gordon was to get its lettings book.
The deal, for some £14.25m, will see both Foxtons and D&G operate in the capital under their existing brands.
Foxtons says: “Having been established in 1958, Douglas & Gordon is a high quality London estate agent with a well-respected brand and large lettings business delivering around 65 per cent of [its] total revenues from 2,900 tenancies. The directors believe that D&G will fit well with Foxtons’ existing business model due to its high level of customer service and compliance, strong fee integrity, well-established landlord relationships and similar customer-focused and results-based culture.”
This deal follows last year’s acquisition of smaller operators London Stone, Pillars Estates and Aston Rowe.
In its most recent statement to shareholders prior to the D&G acquisition, Foxtons committed to build is lettings armoury through takeovers.
Foxtons CEO Nic Budden comments: “Douglas & Gordon is a business we have long admired and respected. Like us, it is a business with intimate knowledge of the London market and a culture built around delivering results for customers making it an excellent strategic fit.”
Foxtons is to release its 2020 performance figures a week today, and given the poor showing of the London sales market during the pandemic, the lettings side of the business is expected to dominate.
This post has originally been featured in Letting Agent Today.