24th Nov 2020 11:55
(Alliance News) -Â Estate agent Foxtons Group PLC on Tuesday said it is buying Aston Rowe Holdings Ltd and its subsidiary Aston Rowe Ltd for GBP2.2 million.
Aston Rowe is an estate agent operating primarily in Acton and Brook Green, west London. Through the transaction, Foxtons will buy Aston Rowe's lettings book comprising 689 tenancies, property management services and all 10 lettings employees.
"The existing Aston Rowe sales business does not form part of the transaction and will continue to be run by the existing owners, who will also retain the trading premises and the Aston Rowe name," Foxtons said.
The lettings book will fit well with the existing business, Foxtons believes, and the deal is expected to be earnings enhancing in 2021.
Of the GBP2.2 million cash consideration, GBP200,000 is deferred for a period of six months.
The acquired lettings business had unaudited revenue and pretax profit for the 12 months ending to August 31, 2020, of GBP1.1 million and GBP500,000 respectively.
"The implementation of our strategy to acquire well run lettings businesses with a strong local presence continues to gather momentum. Taking into account the earlier acquisitions made in 2020, Foxtons has now acquired a total of 1,600 tenancies, with historical annual revenues of GBP2.8 million for a total consideration of GBP4.6 million," said Foxtons.
Shares in Foxtons were up 0.5% at 41.00 pence in London on Tuesday, giving the firm a market capitalisation of GBP135.3 million.
By Lucy Heming;Â [email protected]
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