Foxtons has bought a rival independent estate agency for £2.2 million, its first acquisition after decades of opening its own branches, and also only 15 months after revealing six branch closures.
Foxtons has bought the share capital of two-branch London Stone Properties Ltd and its subsidiary London Stone Property Sales Ltd based in the SE London former Docklands area of Woolwich.
London Stone Properties specialises in selling, letting and managing upmarket luxury apartments in the area, which has witnessed a huge building boom in recent years.
Foxtons says due diligence on the company revealed a turnover for 2019 of £1.5 million, a profit of £700,000 and assets of £4.3 million.
Both its branches are in the Woolwich Arsenal development and its website claims it sold homes worth £25 million and signed 700 tenancies during 2018.
“The Directors believe the acquisition will fit well with our existing business model and branch network due to the high level of customer service and strong growth in landlords that London Stone has demonstrated over a number of years,” a statement from Foxtons says.
London Stone Properties was set up in 2004 by former City high flier Julia Hilary Stone, who is one of three shareholders in the company along with two other family members.
During the General Election Julia signed a letter in the company’s name along with Zoopla founder Alex Chesterman and 60 other business leaders backing the Lib Dems.
The price paid for the agency is being paid in cash by Foxtons out of its reserves, with £200,000 being held back for 12 months.