New lettings agency giant created with £100m private equity cash

5 January 2021 | Renting

New lettings agency giant created with £100m private equity cash

Lomond Capital, which owns Scottish lettings and estate agents Braemore and Stonehouse, is to merge with Yorkshire firm Linley & Simpson.

The new group has a combined portfolio of over 22,000 properties under management and High Street offices in many private rental hotspots including Leeds, Hull, Sheffield, York, Aberdeen, Birmingham, Brighton, Edinburgh and Manchester.

As well as Linley & Simpson, the group brings together UK high street letting and estate agency brands Thornley Groves, Brand Vaughan and John Shepherd, as well as Stonehouse and Braemore.

Advertisement

“Market conditions in the private rental sector are well suited to continued growth through consolidation. We are consolidating fragmented regional markets, enhancing the proposition the sector offers to clients and maintaining a local, on-the-ground approach which brings significant benefits to landlords and tenants” explains Stuart Pender, group chief executive. 

“We will blend the best of both companies through this merger, which together with the backing of LDC and LGT Capital Partners will allow us to realise our ambitious plans for the UK’s residential lettings sector” he continues.

Co-founder and chief executive of Linley & Simpson, Will Linley, will join the board as group managing director. 

Linley says: “LDC has been a great supporter of our strategy to grow through acquisition. This transaction is a continuation of our approach to building our business while retaining our successful local approach.

“We’re excited about the opportunities in each of the Lomond regions and I’m looking forward to working closely with Stuart, the Lomond team and LDC to help grow the new group.”

Nick Simpson will become chief executive of Yorkshire and Martin Elliott will be chief finance officer. Linley & Simpson non-executive chairman Peter Chappelow will become non-executive chairman of the group.

Gareth Marshall, head of the North East at LDC, adds: “From our partnership with Will and Nick over the past two years, we know the potential for ambitious businesses in this sector to grow quickly.

“We’ve supported them to make 18 acquisitions and we’re looking forward to helping the new group expand quickly with its best-in-class multi-regional model.

“The residential lettings market offers an attractive opportunity for geographical expansion and we’re confident the combination of Linley & Simpson’s and Lomond Capital’s impressive management teams and approach will complement each other perfectly for further growth.”

This post has originally been featured in Letting Agent Today.