logo-loader
viewBelvoir Group PLC

Belvoir franchisees beat 2017 target for portfolio acquisitions

Belvoir loans its franchisees up to 30% of the deal value to help them grow their portfolios

belvoir estate agents
Portfolio acquisitions by franchisees are a core part of Belvoir’s growth strategy

Belvoir Lettings PLC (LON:BLV), the UK’s largest property franchise, has told investors it exceeded its target for portfolio acquisitions by its franchisees last year.

During 2017 franchisees completed 23 acquisitions, increasing annualised network revenues by over £3.3mln, 10% ahead of the £3mln target set by the board.

58,000 managed properties

The acquisitions have added an ongoing £350,000 per annum of recurring management service fees (MSF) which is the main revenue stream for the group.

They also added 2,264 managed properties to the group’s portfolio, which now stands at more than 58,000, a year-on-year increase of 4%.

Of the 23 acquisitions completed last year, 14 were from the Northwood network, one from Newton Fallowell and the remaining eight from Belvoir.

READ: Belvoir Lettings says Brook Financial Services' net written business up 57% in two months since purchase

As part of the Assisted Acquisitions programme, Belvoir loans the franchisees some of the cash required to make the purchases.

It contributed £351,000 in 2017 to support the acquisitions. That’s around 10% of the total consideration, and while the group is happy to loan up to 30% of the deal value, most franchisees use their own cash reserves or source loans from other providers.

More deals on the way, says CEO

“The Assisted Acquisitions programme has proved to be very popular within the recently acquired Newton Fallowell and Northwood networks,” said chief executive Dorian Gonsalves.

“In addition to exceeding our target completions for 2017, we ended the year with a very robust pipeline of deals currently with lawyers which we would expect to complete in the first quarter of 2018.

“The appetite for securing portfolio acquisitions reflects the entrepreneurial spirit of our franchisees who are adapting to changes within the sector and seeing opportunity for growth as the sector consolidates.”

Quick facts: Belvoir Group PLC

Price: 118.5 GBX

AIM:BLV
Market: AIM
Market Cap: £41.6 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Belvoir Group PLC named herein, including the promotion by the Company of Belvoir Group PLC in any Content on the Site, the Company receives...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Belvoir Group PLC - Proactive One2One Virtual Event

Belvoir Group PLC's (LON:BLV) CEO Dorian Gonsalves and CFO Louise George pitch the company to investors at the Proactive One2One Virtual Event. Belvoir is the UK’s largest property lettings franchise. Founded in 1995, the firm currently has over 300 offices managing around 67,000 properties.

6 days, 16 hours ago

2 min read