Foxtons has acquired a London lettings agency and along with it a lettings book comprising 689 tenancies.
The deal is worth £2.2m.
In an announcement to shareholders, Foxtons revealed it had snapped up Aston Rowe, which operates primarily in Acton and Brook Green. Foxtons will also take over the 10 staff and all existing management services for clients.
The Aston Rowe sales business does not form part of the transaction and will continue to be run by the existing owners, in the current premises and with the Aston Rowe name.
“The directors believe the lettings book will fit well with our existing business model and branch network due to the high level of customer service and strong growth record. It is expected that this transaction will be earnings enhancing in 2021” says Foxtons.
The firm continues: “The implementation of our strategy to acquire well run lettings businesses with a strong local presence continues to gather momentum. Taking into account the earlier acquisitions made in 2020, Foxtons has now acquired a total of 1,600 tenancies, with historical annual revenues of £2.8m for a total consideration of £4.6m.”
Foxtons recently reported that business activity significantly increased in the third quarter of the year with valuations, instructions, applicant numbers and viewings all considerably up on this stage of 2019 across both sales and lettings.
However, despite that, group revenue for the period was £28.5m, down 10 per cent on the comparable quarter of 2019.
This post has originally been featured in Letting Agent Today.