Foxtons acquires commuter town estate agents in expansion drive

Estate agents Foxtons has acquired two smaller companies in commuter towns as it looks to expand its presence in the lettings market.

Haslams, in Reading, and Imagine, in Watford, will be bought by Foxtons for £7.6m and £5m respectively.

The acquisitions will increase Foxtons’ footprint to 64 branches, as well as delivering an extra 2,900 combined tenancies and increasing the size of the its portfolio of tenancies by 10 per cent to over 31,000 tenancies, it said.

The acquisitions “add to [Foxtons’] strong track record of identifying, acquiring, and integrating high quality lettings businesses to deliver attractive returns,” Foxtons CEO Guy Gittens said, adding that they were a “key part” of Foxtons’ strategy to deliver £25-30m adjusted operating profit in the medium term.

The company said the new branches will act as “strategic hubs” to access growth opportunities in the areas surrounding Reading and Watford, which are both key commuter towns for central London.

Reading is forecast to become the UK’s fastest growing location by 2027, with Watford also expected to outperform the UK economy.

Steve Woodford, Haslams executive chairman, said: “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.“

Mike Cole, Imagine group managing director, added: “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.”

The acquisitions will be funded via Foxtons’ £30m revolving credit facility, and both businesses are being bought from private individual shareholders.