LONDON (Alliance News) - Belvoir Lettings PLC Thursday said it is making a loan of GBP600,000 to support the acquisition of Ryden Lettings, a specialist lettings agency in Edinburgh, as the UK lettings franchise follows its strategy of expanding its national coverage.
In a statement, Belvoir Lettings said its loan makes up part of a GBP1.4 million price tag for the Scottish property manager and lettings agency.
The acquisition is being made by a new joint venture, Dun Eideann Property Ltd, which has been established by two Belvoir franchisees based in Falkirk and Belfast.
Belvoir said it will benefit from an increase in its management service fee revenue as a result of the acquisition, estimated at GBP120,000 per year. The acquisition will add to earnings in its first full year of ownership, Belvoir added.
"We continue to identify additional acquisitions as we pursue our growth strategy and look to expand our network further," Mike Goddard, Belvoir's chairman and chief executive, said in a statement.
Ryden Lettings was formed in 1989 by Brian Adair from the residential letting department of Ryden, the Scottish Chartered Surveying firm, of which he was senior partner. Adair has agreed to continue as a non-executive director to the joint venture for three years.
Belvoir Lettings shares were Thursday quoted down 2.4% at 119.03 pence.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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