1 Mar 2018 07:00
1 March 2018
The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
BELVOIR LETTINGS PLC
(the 'Group' or 'Belvoir')
Further Expansion
Belvoir lettings plc (AIM:BLV), the UK's largest property franchise, is pleased to announce a significant acquisition by the Belvoir Hitchin and Welwyn-Garden-City franchisee. Franchisee acquisitions are a core part of Belvoir's growth strategy and this acquisition is evidence of the strong pipeline of transactions that Belvoir highlighted in its trading update on 7 February 2018.
This acquisition, which comprises 624 managed properties within Welwyn-Garden-City and St. Albans, will add almost £1.0m p.a. of network revenue and will increase Group Management Service Fees (MSF), Belvoir's main revenue stream from its franchisees, by £400,000 in the first six years of ownership. This transaction has been funded entirely by the franchisee's own sources of finance and will result in the franchisee taking on the territory of St Albans in addition to his existing Hitchin and Welwyn-Garden-City territories.
Furthermore, three other of Belvoir's franchisees in Derby West, Hendon and Corby have also recently acquired a local lettings portfolio, which will add collectively £1.0m of network revenue and £122,000 of MSF p.a., against which Belvoir provided £193,000 of financial support.
Dorian Gonsalves, CEO of Belvoir, commented;
"In the recent trading update, we reported that we had doubled the number of transactions under our Assisted Acquisitions programme in 2017 and promised that there was a strong pipeline expected to complete in the first quarter of 2018. We have already delivered on that promise within just two months with these four transactions equating to 75% of the total value of 2017 franchisee acquisition transactions, adding around 1,335 managed properties to the Belvoir network.
Our Assisted Acquisitions pipeline remains strong and the Board has set itself the target of doubling the value of such franchisee portfolio acquisitions again in 2018. Our ability to capitalise on the consolidation in our sector is a testament to the Belvoir Group acquisitions team which identify and facilitate such deal opportunities and harness the entrepreneurial spirit of our franchisees."
For further details:
Belvoir Lettings PLC Dorian Gonsalves, Chief Executive Officer Louise George, Chief Financial Officer | 01476 584900 investorrelations@belvoirlettings.com |
Cantor Fitzgerald Europe Rick Thompson, Philip Davies, Will Goode Corporate Finance |
0207 894 7000 |
Caspar Shand Kydd, Alex Pollen Sales | |
Buchanan Charles Ryland, Vicky Hayns, Madeleine Seacombe |
0207 466 5000 |
Note to Editors:
About Belvoir Lettings PLC
Founded in 1995 and listed on AIM in 2012 (BLV.L), Belvoir operates a nationwide property franchise group with 300 offices across four brands offering a range of specialist services in property rental, property management, residential lettings, buy to let and property sales. With its Central Office in Grantham, Lincolnshire, the Group manages over 58,000 properties and reported revenue of £9.9m in 2016 making Belvoir the largest property franchise group in the UK.
About Belvoir Hitchin
Having opened in 2008, Belvoir Hitchin was resold to the current franchisee in 2014 and since has grown by over 50%, now ranking as the 8th largest Belvoir office. In 2016, the franchisee opened a second office as a cold start in Welwyn Garden City and has built up that business to be the 60th largest Belvoir office which is an outstanding achievement for a new office within just 20 months. This acquisition will add a third territory and substantially increased the Belvoir market share within the existing two territories.