Foxtons has bought its second estate agency this year, this time for £2.2 million.
The company has announced the acquisition of the entire issued share capital of Aston Rowe Holdings Ltd which operates two-branch agency Aston Rowe.
It has branches in Acton and Brook green in West London and was set up in 2011 by Billy Rowe and Luke Simpson.
Rowe (pictured) is a career London estate agent while Simpson, who has been running its lettings business and marketing, originally hails from New Zealand.
Foxtons says it has only bought the agency and its lettings book, which comprises 689 tenancies and ten employees, as its sales operation is not included within the deal.
Rowe and Simpson will retain their sales office as well as the Rowe name for property sales.
Foxtons says Aston Rowe’s lettings book will fit well with its existing business model and branch network “due to the high level of customer service and strong growth record,” the company says.
“It is expected that this transaction will be earnings enhancing in 2021,” the company says.
Although Foxtons has paid £2.2 million for Aston Rowe’s lettings operation out of its cash reserves, £200,000 is deferred for a period of six months.
This buys a business with a £1.1 million turnover and £500,000 profit for the 12 months to August 2020 and assets of £2 million.
“The implementation of our strategy to acquire well run lettings businesses with a strong local presence continues to gather momentum,” says Foxtons.
Taking into account the earlier acquisitions made in 2020, it has now acquired a total of 1,600 tenancies, with historical annual revenues of £2.8m for a total consideration of £4.6m.
This includes its purchase of London Stone Properties for £2.2 million in March this year.