Estate agent Belvoir to merge with rival The Property Franchise Group

Belvoir Group is ready to merge with rival The Property Franchise Group, making a mixed enterprise with a market capitalisation of greater than £214million.

The deal, ought to or not it’s accepted by shareholders, will create one of many UK’s largest multi-brand lettings and property company teams with greater than 930 property franchise places and round 152,000 tenanted properties throughout the nation.

Belvoir advised shareholders on Wednesday the deal will see the mixed enterprise promote greater than 28,000 properties every year, in comparison with the ten,970 it offered in 2022 and the 4,177 exchanged within the first half of 2023.

Merger: The mixed enterprise may have a  market capitalisation of greater than £214m

The agency’s shareholders will obtain 0.806377 new TPFG shares for every share they personal, valuing the shares at 277.4p apiece – a premium to the 256.5p at shut on Tuesday.

Belvoir Group specialises in rental properties, with a concentrate on the Midlands and the North, however has expanded into gross sales and mortgage recommendation.

Founded within the Nineteen Nineties and listed on AIM in 2012, the corporate runs a whole bunch of property and letting companies, managing houses on behalf of landlords and tenants.

The firm additionally advantages from working a franchise mannequin, with 240 franchisees working 335 workplaces throughout the nation.

Belvoir defied troublesome market situations within the half-year end result after the Lincolnshire-based firm’s monetary companies arm noticed revenues soar on bumper demand for mortgage refinancing and product transfers. 

TPFG Property Franchise Group runs a pure franchise mannequin underneath a number of manufacturers, reminiscent of Hunters, Ellis & Co and Parkers.

Belvoir and TPFG generated mixed revenues of £60million in 2022, with administration service charges of roughly £27million and adjusted earnings earlier than nasties of roughly £22.5million.

It is meant that the mixed group can be led by TPFG’s chief government Gareth Samples, its finance boss David Raggett and Paul Latham as chair, and Belvoir non-executive director Michelle Brook.

Upon completion of the merger, Belvoir shareholders will maintain roughly 48.25 per cent of the mixed group whereas TPFG shareholders will maintain roughly 51.75 per cent.

The deal is anticipated to be accomplished within the first quarter of 2024.

Belvoir Group shares had been up 1.8 per cent to 261.15p approaching noon on Wednesday. 

TPFG shares had been down 1.3 per cent to 339.44p.

Latham stated: ‘We imagine that the merger represents a compelling alternative for all shareholders.

‘Belvoir brings additional breadth via its nationwide community and a monetary companies enterprise which can be complementary to our present providing. The merger will allow us to proceed to develop within the sector and, in the end, ship better worth to shareholders of the mixed group.’

Jon Di-Stefano, non-executive chairman of Belvoir, added: ‘The merger of Belvoir and TPFG combines two companies with a lot in widespread, every supporting a community of entrepreneurial franchises, and can create one of many UK’s largest multi-brand lettings and property company teams mixed with a rising monetary companies enterprise.

‘With their complementary geographic footprints offering each scale and diversification throughout quite a lot of excessive road and hybrid manufacturers mixed with excessive ranges of recurring income, we really feel positive that the mixed group will present a sturdy platform from which to develop.’