Foxtons has confirmed that it is talks with Douglas & Gordon to purchase its rival.
Rumours have been swirling within the industry for the past week that a deal is on the table but until now representatives from both Foxtons and Douglas & Gordon told The Negotiator they were unable to comment.
“These discussions reflect the company’s stated ambition to acquire high quality businesses with strong lettings books,” a statement released by Foxtons this afternoon says.
“Any potential acquisition would be funded by the company’s existing cash resources.
“There can be no certainty that an acquisition of Douglas & Gordon will be completed.”
Such a deal is part of pattern – Foxtons has belatedly awoken to the potential of growing its lettings business via acquisitions rather than cold-start branches.
Industry commentators say the company got bad badly burned at many of its sub-urban London cold-start locations and, after closing down five three years ago in Barnes, Beckenham, Enfield, Loughton and Ruislip, has instead turned to buying market share in central London’s prime property rental market.
A Douglas & Gordon acquisition would fit this strategy and Foxtons, which still has much of its £22 million Covid fighting fund intact, is in a good position to purchase the company without getting into debt.