Belvoir Group PLC (LON:BLV) is buying the owner of the Nicholas Humphreys estate agent and letting chain for £4mln.
The earnings enhancing deal brings under its ownership 18 franchised and three corporate-owned offices and strengthens Belvoir’s position as one of the UK's largest property franchise groups.
“With its bias towards lettings, the Nicholas Humphreys business is underpinned by a strong recurring revenue stream, whilst offering the opportunity to roll out Belvoir's existing expertise in sales and financial services across the network,” said chief executive Dorian Gonsalves.
The newly acquired business specialises in student lettings, giving an overall revenue split of 87% lettings and 13% sales.
Its portfolio of 6,510 managed units provides a strong underlying recurring revenue stream, investors were told.
Belvoir has bought White Kite Holdings 2021 Ltd and its two subsidiaries, White Kite Ltd and Nicholas Humphreys Franchise Ltd.
It said expects the transaction will confer a number of benefits including enhanced product and financial services offerings.
It will also provide the “opportunity for accelerated growth under Belvoir's assisted acquisitions programme”.
"The acquisition of Nicholas Humphreys demonstrates again that Belvoir is delivering on its strategic objective of investing in successful franchise businesses that are aligned with our multi-brand franchise model, where there is scope for further growth as part of the group,” said CEO Gonsalves.