Foxtons makes surprise move into commuter towns with acquisitions

The London-based agent has spent some £12m buying two estate agencies, one in Reading and the other in Watford, both bought from private shareholders.

haslams foxtons

Foxtons has bought two estate agencies in one go, both of them major players in their respective markets for a total of £12.6 million but most importantly, taking the company into markets outside London for the first time in many years.

The estate agencies involved are three-branch Haslams in Reading and another three-branch agency, this time the Imagine Property Group in Watford. Foxtons says it has bought the firms largely because they operate within London commuter towns with good links back to the capital.

The last time Foxtons ventured outside the capital was during the noughties when it went into Woking and Guildford during 2006 into Guildford with aggressive ‘zero commission’ introductory offers.

Guy Gittins, Foxtons
Guy Gittins, Chief Executive, Foxtons

“Reading and Watford are new markets for Foxtons and reflects our confidence that the Foxtons Operating Platform, and in particular our technology, data and reach can unlock new growth opportunities in these new markets,” says Foxtons CEO Guy Gittins.

Haslams, which is the older of the two firms having been set up in 1994 compared to Imagine, which was incorporated in 2016, has additional coverage within the nearby towns of Wokingham and Crowthorne through its Michael Hardy brand.

Its unaudited total revenue and operating profit for the 12 months ended 31 December 2023 was £6.5m and £0.8m respectively. Initial consideration for the acquisition, on a cash and debt free basis, is £7.6m, with £2.4m deferred and contingent on the delivery of performance targets.

Custodian
Steve Woodford

Steve Woodford, Haslams Executive Chairman and also its main shareholder via a holding company, adds: “Having led The Haslams Group for over three decades, it was important to me for our buyer to be a custodian of our business, building on our existing successes and nurturing the exceptional expertise across the Group.

Foxtons was the perfect fit and I’m looking forward to seeing how both businesses will excel after combining forces. With the ability to leverage the power of Foxtons’ platform, I’m extremely confident the business will go from strength-to-strength.”

Imagine’s unaudited total revenue and operating profit for the 12 months ended 31 March 2024 was £3.3m and £0.5m respectively. Initial consideration for the acquisition, on a cash and debt free basis, is £5.0m, with £1.0m deferred and contingent on the delivery of performance targets.

Both businesses are being bought from private individual shareholders.

Mike Cole

Mike Cole, Imagine Group Managing Director, who is its main shareholder, adds:  “After leading the business for nearly 20 years, the time was right for new energy and investment.

“The property landscape is changing, and it is essential agents have the best technology, marketing and brand awareness to stay ahead, which is why we chose Foxtons to take the business forward.

Foxtons’ expansion into Hertfordshire is one of the most exciting developments the local market has seen for two decades, and I have no doubt our exceptional staff and long-standing clients will be excited about our offering being supercharged by Foxtons.”

Track record

Gittins adds: “Our latest acquisitions add to our strong track record of identifying, acquiring, and integrating high quality lettings businesses to deliver attractive returns and are a key part of our strategy to deliver £25-30m adjusted operating profit in the medium term.

“We are delighted to have completed the acquisitions of Haslams and Imagine as we continue to pursue acquisitive lettings growth, to supplement our organic growth strategies.

“We have been impressed with the quality of both businesses which hold established leadership positions in their local markets and have built long-standing client relationships over many years, making them a great fit with Foxtons.”

These latest acquisitions take Foxtons to 64 branches and deliver a further c.2,900 tenancies (Haslams: c.1,700, Imagine: c.1,200), increasing the size of Foxtons’ portfolio of tenancies by c.10% to over 31,000 tenancies.


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