Barclays backers bow out of LSL – over 13 times richer

Barclays Private Equity has sold its remaining 12.6% stake in LSL Property Services, raising £27m.

It originally backed the management buy-out of the group from its previous owners Norwich Union in July 2004 for £42.5m.

The latest sale of shares means that Barclays Private Equity has enjoyed a total return of £140m – or an astonishing 13 times its original investment. 

The management buy-out enabled a stock market float which valued LSL at £211m.

The buy-out was led by Simon Embley who has since built it up to become the second largest estate agent in the UK after Countrywide. For the first half of this year, LSL reported a 56% increase in profits to £17m with turnover up 22% to £90.2m.

LSL is parent company to the Your Move and Reeds Rains chains of estate agents. It bought the latter a year after the management buy-out, in 2005.

In January this year, it also bought, for £1, the former Halifax Estate Agencies and has since set about rebranding these. LSL also operates e.surv, Chancellors Associates and Barnwoods (surveying); St Trinity (asset management); and Linear and First Complete, and as from now Pink Home Loans (financial services).

The sale by Barclays of its remaining holding comes as LSL completes the acquisition of this last business from Advance Mortgage Funding and its subsidiary business BDS Mortgage Group.

Following this acquisition, LSL now has 1,300 new advisers. It will also have an arm for advisers who wish to be directly authorised through the Pink Mortgage Club.

The purchase of Pink Home Loans seems unlikely to be last for LSL.

Phil Griesbach, director at Barclays Private Equity, who led the investment in LSL, said:  “BPE is selling its remaining shares in LSL, having held these for four years post-float. We have generated a great return for our investors and are confident that LSL’s excellent management team will continue to successfully grow the business.”