LONDON (Alliance News) - Belvoir Lettings PLC Wednesday said its Nuneaton franchise has acquired Key Estate Agents an independent lettings agent in Attleborough. Belvoir Lettings provided a loan to its Nuneaton franchise to fund the deal.
Until recently, Belvoir's strategy was to specialise in lettings services through its own outlets and through franchised offices trading under the brand. Each franchisee pays an initial fee to Belvoir, plus an on-going management service fee which is a percentage of monthly revenue. However, last year the company branched out and established an estate agency arm.
The company said Key Estate Agents will be combined with Belvoir Nuneaton. The acquisition will result in a four-fold increase in the number of properties managed by this Belvoir branch.
In a separate deal, the company said its Grantham office has been acquired by the existing franchise owner of the Belvoir Bourne and Belvoir Spalding agencies. This is in line with the company's strategy to reduce corporate-owned offices by franchising out.
The deals follow the shock departure of its newly-appointed chief executive, Carl Chadwick, in May, who stepped down to focus on other business interests including his role as chief executive of Sun Axis Corporate Finance.
The lettings specialists said Executive Chairman Mike Goddard will resume the role of chief executive, supported by Dorian Gonsalves, the company's director of commercial and franchising.
Belvoir shares were quoted up 0.4% at 130.00 pence Wednesday morning.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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