Major regional estate agent Thornley Groves has been bought by Lomond Capital, a fast-growing property firm.
Lomond, formed just under three years ago, paid an undisclosed sum for the agent, which has eight offices plus two property management centres in and around Manchester, and which last year reported revenues of £4.1m and profits of almost £830,000.
It is the first time that Lomond, which has been snapping up letting agencies, has bought into estate agency – although around half of Thornley Groves’ income is from rentals. Last year it collected over £13.5m in rent, secured more than 1,600 lettings and managed over 2,000 properties.
The deal is also the biggest single acquisition to date made by Lomond, which has UK-wide expansion in its sights – and a £45m war chest. Its strategy is to purchase letting and managing agents, keeping their branding, and to consolidate local markets.
Michael Groves, who founded his estate agency in 1991 at the age of 25, and operations director Jason Watkin retain a shareholding in the company. They become respectively chairman and chief executive of the Lomond Group in Manchester.
The firm currently employs 80 staff and, on top of its letting operation, sells some £250m of property.
The deal comes on the back of Lomond’s purchase of Manchester-based lettings firm Penny Ashton late last year. Thornley Groves has £350m worth of property under management which, combined with the Penny Ashton portfolio, takes the total managed by Lomond in Manchester to £450m.
Groves said: “One of the key motivations for making this deal with Lomond is our absolute belief that estate agency, especially residential lettings and property management, needs change in order to deliver a more professional asset management service and deliver a broader range of client services.
“Both of these things will be demanded by both institutional and private landlords as the private rented sector continues to grow. This can only be achieved if consolidation takes place in our industry.
“The consolidation play is Lomond’s key strategy and we are excited at the prospect of leading this transformational change in Manchester.
“The deal is a fantastic opportunity for us to grow our business across Manchester. It will enable a period of expansion through acquiring other businesses and will allow us to offer other related added-value services to our existing customers. The deal will also help boost our growing estate agency business.”
Stuart Pender, chief executive of Lomond Capital, said: “Manchester has a very attractive property market offering with the largest private rental sector outside London. It has been a key market for Lomond Capital for some time now. We have been looking for a high-quality and ambitious firm with a strong brand to be at the centre of our growth strategy in Manchester.
“We were delighted to secure the deal with Thornley Groves as they have an established brand with a reputation earned over more than 20 years. We will work with the existing owners to strengthen the market-leading position.”
The Lomond Group has so far acquired a major presence through a string of acquisitions in Edinburgh and Aberdeen and is now working on a number of opportunities in England, notably in Leeds and Birmingham, as it works its way south.
Pictured from left are: Robert Hamilton, acquisitions director Lomond Capital; Jason Watkins, Thornley Groves; Michael Groves; Stuart Pender, CEO Lomond Capital; Andy Halstead, business development director Lomond Capital; Roger Lane-Smith, chairman Lomond Capital; and Bryan Robertson, integration director Lomond Capital
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