Estate agency Leaders Romans preparing for £400m sale, claim reports
City sources have told the Mail on Sunday that the estate agency group has called in bankers for a strategic review prior to a sale.
Estate agency the Leaders Romans Group (LRG) is reported to be preparing for a £400m sale, it has been reported over the weekend.
The 160-branch Berkshire-based company, whose huge expansion in recent years has been funded by equity investment group Bowmark Capital, has appointed banking giant NM Rothschild to work on a strategic review of the business with a view to a sale later this year or next year.
Bowmark, which has one of its directors on the board – Charles Ind – and is a shareholder in the estate agency group, clearly believes the time is ripe to sell the company and cash in its investment, helped by the current runaway property market.
Acquisitions
The City firm initially backed a management buyout of Leaders, and the later acquisition of Leaders back in 2016 and has backed a string of further acquisitions.
LRG’s latest accounts for 2019 reveal a turnover of £117 million and an operating profit of £17 million, although once its interest payments on borrowings are deducted from this, it made a pre-tax loss of £43 million.
Bowmark Capital has lent LRG nearly £100 million so far to fund its development, charging nearly £10 million a year in interest.
The news of LRG’s likely sale follows news last week that Chestertons is also seeking a sale, reportedly for £100m, by its owner and Libyan businessman Salah Mussa.
Read out recent interview with LRG’s CEO Peter Kavanagh.
