Platinum Equity is preparing LRG for an £800m ‘auction’ in the coming months, according to a report in Sky News.

Bankers appointed

It claims that the American buyout firm, which acquired LRG from Bowmark Capital in January 2022, has appointed bankers at Rothschild to oversee talks with potential bidders.

And City sources have told Sky News that Platinum Equity believes a valuation of well over £700m is achievable for the sale of the business.

The estate agency group, led by Chief Executive Michael Cook (pictured), operates more than 350 branches and employs approximately 3,500 people across brands including Romans, Stirling Ackroyd, Chancellors and Acorn. LRG also manages 73,000 properties and last year handled property sales worth £3.6bn.

LRG has ambitious expansion plans and has been on the acquisition trail over the last couple of years, with its April purchase of Chancellors its largest deal to date.

The timing of LRG’s rumoured sales coincides with speculation that Chancellor Rachel Reeves is considering property tax changes in her autumn Budget, including an overhaul of Stamp Duty and the possible introduction of a Mansion Tax.

Concerns over budget impact

There are concerns over the impact any changes would have on the housing market and asking prices already fell unexpectedly by 0.1% last month, according to Rightmove.

Although prospective bidders have reportedly begun being sounded out, any auction is likely to take several months to conclude, and the process may well be complicated by uncertainty over the Budget, which will take place on 26th November.

The Neg has approached LRG for comment, but the firm has yet to respond.