Foxtons Plc (LSE:FOXT) has acquired two lettings-focused estate agents, Haslams and Imagine Property Group, for a total of £12.6 million.
Located in Reading and Watford respectively, the purchases further increase Foxtons’ presence in the commuter belt following expansion efforts in Guildford and Woking.
These and similar regions are seeing strong economic growth and are likely targets for Labour’s election pledge to build 1.5 million new affordable homes over five years.
Foxtons’ chief executive Guy Gittins said: “Our latest acquisitions add to our strong track record of identifying, acquiring, and integrating high-quality lettings businesses to deliver attractive returns and are a key part of our strategy to deliver £25-30m adjusted operating profit in the medium term.
“We have been impressed with the quality of both businesses which hold established leadership positions in their local markets and have built long-standing client relationships over many years, making them a great fit with Foxtons.”
Foxtons expects the acquisitions to be earnings-accretive in 2025 and is being funded via a £30 million revolving credit facility.