LSL Property Services has told Estate Agent Today that the company did not agree to a potential sale of its mortgage arm at last week’s general meeting.
This is contrary to a story that ran in a trade publication on Friday.
The controversy concerns the financial services division of LSL Property Services called Pivotal Growth: this was formed earlier this year through a joint venture between LSL and Pollen Street Capital, as part of LSL’s bid to become a major national mortgage broker.
Last week a publication suggested this was likely to be up for sale in the near future.
However, a spokeswoman for LSL has told EAT: “I just wanted to clarify that LSL did not agree to a potential sell off at the General Meeting.
“The General Meeting was convened in order to seek shareholder approval to remove a cap on any proceeds from any future exit (likely to be within a three to six year period) from the joint venture with Pollen Street Capital announced on April 23.
“It was an administrative matter, and nothing at LSL has changed as a result of the meeting.”
Pivotal Growth was announced in April, described as a mortgage brokerage which aimed to grow in size through acquisitions, thus bolstering LSL’s position in the financial services sector.
It’s led by LSL's Simon Embley, who stood down as non-executive chair of the LSL board in April
Recently LSL announced it was linking some of its mortgage and other financial services activities with rival agency operation The Property Franchise Group.
This agreement meant that LSL would be providing digital and face-to-face mortgage and protection advice to the customers of TPFG and TPFG's franchisees - they sell some 23,000 properties annually, so have plenty of scope for mortgage sales too.