Most shareholders in The Property Franchise Group support a proposed merger with rival firm Belvoir, it has been confirmed.

A joint statement to the London Exchange says that investors holding 56.7% of TPFG shares back the move.

A smaller proportion of Belvoir shareholders have so far given their backing, with 31.2% indicating their support.

Unanimous

The boards of both companies have given their unanimous approval to the merger, which would see TPFG shareholders hold around 51.75% of the combined group and Belvoir investors 48.25%.

It has also emerged that Belvoir shares are valued at 277p under the deal’s arrangements, with the current price around 260p. The combined company is valued at £214.4 million.

Both companies saw their shares dip in value after the announcement of the merger earlier this month, but have since recovered well, especially Belvoir.

Merged

Each firm has planned general meetings of shareholders next month to vote on the deal, which is scheduled to go through before the end of March.

The newly-merged group will boast more than 930 property franchise locations, managing approximately 152,000 tenanted properties across the UK and will be expected to sell more than 28,000 properties per year.

CEO to leave

Belvoir Group’s CEO Dorian Gonsalves (main picture, right) is set to leave the company under the terms of the merger.

Louise George, Belvoir’s CFO, is also set to go, although both senior executives will stay on for 12 months to help the two firms integrate.

Paul Latham, Chairman, TPFG

Paul Latham, TPFG’s chairman will chair the combined group. The new company’s board will include Gareth Samples, TPFG’s CEO (main picture, left), David Raggett, TPFG’s CFO, and Michelle Brook, Belvoir executive director.

Richard Martin, founder of TPFG, will step down from the TPFG Board to take on a new role as lifetime president, and will continue to provide the combined group board with strategic advice.

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Gary Hersham’s Beauchamp Estates has opened two offices in the South of France in the luxury resorts of Mougins and St-Jean-Cap-Ferrat (main picture) as it attempts to capitalise on the post-pandemic return of super-rich international buyers to the French Riviera.

The two new French branches, known as Beauchamp Estates Mougins and Beauchamp Estates Cap Ferrat, offer sales, lettings and property management services and each are situated in ultra-prime locations.

BILLIONAIRES

They complement the existing branches in the ‘billionaire’s holiday destination’ which are located in Cannes and St Tropez and it is also looking at new office premises in Monaco and London.

Beauchamp Estates Mougins office and team.

Providing 485 sqft (45 sqm) of commercial space, Beauchamp Estates Mougins is located on the Avenue Saint-Basile, just off the Penetrant Grasse-Cannes express-way, one of the principal routes into the region.

Beauchamp Estates Cap Ferrat office and team.

Comprising 1,830 sqft (170 sqm) of office space, the Cap Ferrat branch is onon Avenue Claude Vignon, in the centre of St-Jean-Cap-Ferrat, enabling the office team to reach the various ultra-prime waterfront property locations.

Both branches have been newly refurbished with the Beauchamp Estates name and logo on the fascia, and the smart glass fronted facades featuring windows displaying property instructions and video-screens.

Inside, both offices have stylish contemporary interiors with meeting areas for clients, office space for the teams and private consultation space.

The teams are led by Adrien Willing-Lamy, MD of Beauchamp Estates (France), supported by a team of sales and lettings managers and negotiators and property management staff.

PENT-UP DEMAND

Willing-Lamy says: “Since the end of the COVID-19 pandemic we have seen a surge in pent-up-demand and ultra-prime property values along the French Riviera have risen by 15% to 20%.

“Over the last 12 months we have seen the return of international buyers especially wealthy purchasers from the USA, Middle East, UK, Switzerland and Nordic countries..”

Gary Hershham, Beauchamp Estates

Gary Hersham, Founding Director of the firm who featured in The Guardian profile last year, adds: “One of the results of the COVID-19 pandemic is that clients learnt to work from anywhere in the world and operate their business interests from home or the office.

As a result of this transformation our clients looking at buying or renting luxury homes on the French Riviera are increasingly looking at having second homes rather than purely summer vacation homes, where they can work remotely, whilst enjoying a change of scene and sunshine lifestyle.”

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The recent sales of Stirling Ackroyd, Alexander & Co and Chestertons represents a huge vote of confidence in the UK lettings market.

Despite endless articles about the decline of the buy-to-let market, it seems that a private equity fund and a large European property conglomerate still have enough confidence in the sector to spend a nine figure sum on three large acquisitions, and I believe that this confidence is fully justified.

Whilst over 200,000 buy to let properties were sold in 2023 , most of these sellers had bought their properties quite recently and had large mortgages on them. Many were forced to sell because their mortgage payments tripled after Liz Truss’s disastrous budget.

However, landlords who have owned their properties for longer bought their properties at much lower prices and have smaller mortgages or own their properties outright. These landlords are much less likely to sell because, if they did, they would incur a huge Capital Gains Tax bill.

Enormous market

Despite the recent disposals, the size of the buy-to-let market in the UK is still enormous. According to HMRC, 2.79 million landlords filed self-assessment tax returns in the tax year 2021 /2022, which showed that they earned £48.8 billion from property investments. And this figure excludes all the landlords who operate through limited companies.

Against this backdrop, the loss of 200,000 properties, whilst a tragedy for every tenant that was made homeless, hardly spells the end of the BTL sector.

Within five to 10 years, the lettings market will be dominated by a small number of mega businesses.”

My expectation, therefore is that the consolidation of the letting industry will continue unabated. We are still dealing with record numbers of business sales and our clients are achieving record prices for good quality managed letting businesses and portfolios.

The pace of the consolidation is so rapid that I would forecast that within five to 10 years, the lettings market will be dominated by a small number of mega businesses with independent agents becoming increasingly rare.

If I am right, I may have to start thinking about the next industry sector that is likely to consolidate!

Adam Walker is a business sales broker who has worked in the property sector for over 40 years.

www.adamjwalker.co.uk

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The entrepreneur gave up a low paid apprenticeship role at just 18, with no savings, and set up the agency in 2022.

Then in July last year she started with her agency, Grace Estates, based in Warrington, on a full-time basis.

Amazing

She says the last year has been “an amazing and challenging adventure”, and she is enjoying the work as a solo agent, the Warrington Guardian reports.

“Many people like the self-employed estate agent module since you just deal with one person rather than a whole office,” she says.

estate agent

Gilbert says she spotted gaps in the local market: I saw a trend within the local companies: a reluctance to embrace new techniques and an unwavering commitment to outdated practices.

Her father, who is an accountant, has been able to give her advice on how to establish a new business.

“The current market is a very difficult market to break into as a new agent. The local estate agents are hungrier than ever for new listings,” she says.

Strategy

Her strategy is to only list a set number of properties at any one time.

I make a commitment to handle only a limited number of properties simultaneously.”

“I make a commitment to handle only a limited number of properties simultaneously, differentiating my approach from other agencies that often attempt to manage 30+ homes at once, struggling to balance client expectations and enquiries,” she explains.

Gilbert has introduced an international dimension to her business, after marketing three luxury villas in Cyprus. And she is also dealing with chalet rentals in the north west Wales village of Abersoch.

Young agent duo take on big NE of England Hunters franchise

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The founder of an independent London estate agency marking its 20^th anniversary has revealed the secret of his success so far – to “treat clients like they were your own mother”.

So says Steve Wayne, founder of two-branch firm Benjamin Stevens, which has re-branded to coincide with the milestone, which it is marking today.

The estate agency, based in NW London, was launched in January 2004 from a modest serviced office in Mill Hill when Steve was aged just 22 years old, having had only three years’ experience within the property industry.

Since then, he and his team have grown and developed the business which now operates large and successful residential and commercial sales, lettings and property management departments as well as a well-established block management arm and an in-house auctions department.

Its branches are in Edgware (since 2004) and Bushey (since 2009), currently covering Edgware, Mill Hill, Burnt Oak, Colindale, Kingsbury, Stanmore, Wembley, Harrow, Bushey, Oxhey, Watford, Borehamwood and all surrounding areas.

Hybrid operation

But the agency also launched a hybrid ‘hub’ offering In September 2018.

“Since then, the number of Partner Agents working on a self-employed basis under the Benjamin Stevens brand who have joined our Hub model has tripled in size,” says Steve. “They are all local area experts, covering the entire London, Greater London areas.

In 2014 the agency was invited to become members of the Guild of Property Professionals.”

Steve and his team of loyal staff, many of whom have been working there since its early years, describe themselves as “one big dysfunctional work family”.

They say the secret to their success is the fact that they care about their clients. Their record over the past two decades, is having re-sold the same house four times – each time the owner returning to Benjamin Stevens to sell the property again, because they were so pleased with the service they received.

Wayne says: “My philosophy has always been to treat clients with the same respect you would want someone to treat your own mum.

“It’s a rule that has paid off time and time again. There will always be a need to for people to buy, sell and lease their properties, but it’s the service you offer that wins you the business.”

Wayne says that at 42 he’s “nowhere near ready for retirement and want to continue growing the business and enjoying what he has achieved so far”.

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Countrywide has launched a Specialist Shared Ownership Services division as it looks to stake its claim to offering the best catch-all service to would-be buyers.

Shared ownership, whereby clients buy a share of the property and pay rent to the landlord on the rest, has grown exponentially in recent years.

MARKET VALUE

Normally buyers take a share between 10% and 75% of the home’s full market value and pay rent to the landlord for the share they own and in most cases a monthly ground rent and service charges for the upkeep of communal areas.

More shares can then be bought in the future – known as ‘staircasing’ – which in turn would reduce the amount paid in rent.

For Countrywide, what was initially a side-line for the agency has ballooned from selling 40 shared ownership units in 2019 to more than 900 in 2023 – an 2,150% increase in market activity.

Through its Affordable Housing Team, Countrywide already provides services for Housing Associations, Local Authorities and the For-Profit sector on a nationwide scale.

GREAT VEHICLE

Owen McLaughlin Managing Director of Countrywide Land and New Homes, says: “Shared ownership is a great vehicle for people to join the housing ladder and it’s growing in popularity.

Owen McLaughlin, Countrywide

“We have been working with shared ownership as part of our New Homes services, but with the expertise we hold through our Affordable Homes Director, Roy Hind, and his team, we increasingly found the demand for a specialist service was snowballing.”

McLaughlin says that they support clients from inception and land buying right through to handing over the keys to buyers on move in day.

He adds: “The phenomenal breadth of the Connells Group proposition includes almost everything a housing association could need, both in respect to new build and existing stock.

“This is a massively exciting launch for us, we have already worked with many well-respected partners and industry giants and are stepping into to 2024 poised to expand.”

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Estate agency group, Charters, has expanded its lettings portfolio even further with the second acquisition this month.

The purchase of Manns & Manns Lettings Portfolio in Bursledon, Southampton, takes the firm’s number of managed properties to c. 2,700 across Hampshire and Surrey.

The news follows the purchase of Purelet for an undisclosed sum just a couple of weeks ago.

Robert Mott, Chairman of Charters Group (main picture), commented: “It is a pleasure to acquire the lettings portfolio at Manns & Manns, as we continue to grow our business.

“This addition to our already extensive lettings portfolio will further underline the commitment we offer to landlords. With our in-house experience and expertise, robust infrastructure, and commitment to staying up-to-date with legislation, we are well-equipped to alleviate the stress of being a landlord.

“We are delighted to enhance the already exceptional service the Manns & Manns lettings team offer. I have known Helen for many years and this collaboration is built on mutual trust and respect.”

Helen Manns (pictured left), owner, said, “This is exciting news for Manns & Manns and Charters. They are a well-known and respected Lettings and estate agents who have grown into one the south’s largest independent agencies.

I, along with Robert, will be looking forward to a bright future for the Lettings arm of Manns & Manns. With systems and processes already in place, in-house legislation expertise and the landlords needs at the forefront of everything they do, this will continue to maintain and enhance the service for everyone involved.”

Charters Group is actively seeking to invest in other portfolios as part of its expansion strategy.

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eXp UK has revealed the first estate agency brands to have joined under its new ‘brokerage’ model – Hertfordshire-based estate agent Mackays and Midlands-based Billingham & Co.

The Neg revealed at the beginning of the month how the self-employed agent platform wanted existing branch-based estate agencies to convert to the US-style self-employed ‘umbrella model’ that can absorb both technological and regulatory costs.

PARTNER BUSINESS

The idea behind the firm’s ‘brokerage’ model is for traditional high street estate agencies with an employed workforce to become an eXp partner business, and to transform their valuers & listers into self-employed agents in association with the eXp brand, whilst also keeping their existing brand.

Under this model business compliance such as anti-money laundering rules and GDPR would be supervised and guided by eXp UK while technology like lead management systems and CRM tools would be developed for agents with a nominal monthly fee.

Now Mackay Property – a single office agency in Sawbridgeworth, Hertfordshire, founded and owned by Adam Mackay – and Matthe Billingham of Midlands-based Billingham & Co have decided to partner their business with eXp.

Adam Day (main picture, left), Head of eXp UK, says: “We’ve already pioneered the introduction and growth of the supported self-employed model within the UK property sector and this has been incredibly successful in its own right.

“Our brokerage model is simply an evolutionary step in this process and one that offers further choice, flexibility and opportunity to agents in what is both a challenging and competitive market.”

PROUD AGENTS

Adam Mackay (main picture, right) of Mackay Property, says: “I’m super excited for Mackay Property to be the first business to join eXp. Fourteen years ago, when I started Mackay Property, my goal was to create a team of driven, passionate and proud agents.

“My vision was to really make a positive impact and help change the industry for the better. I feel this is the perfect partnership to bring that vision to life.”

And Matt Billingham, of Billingham & Co, adds: “This new relationship will supercharge our marketing, brand, and presence and free our team of agents to focus solely on our clients without having to worry about bureaucracy.

“The support and responsiveness of our new extended team at eXp has been world-class and we look forward to demonstrating our new brand power in 2024”.

Watch Adam Day and Adam Mackay talk about the latest deal HERE.

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