Belvoir Lettings PLC Further Expansion (2945G)
March 01 2018 - 1:00AM
UK Regulatory
TIDMBLV
RNS Number : 2945G
Belvoir Lettings PLC
01 March 2018
1 March 2018
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
BELVOIR LETTINGS PLC
(the 'Group' or 'Belvoir')
Further Expansion
Belvoir lettings plc (AIM:BLV), the UK's largest property
franchise, is pleased to announce a significant acquisition by the
Belvoir Hitchin and Welwyn-Garden-City franchisee. Franchisee
acquisitions are a core part of Belvoir's growth strategy and this
acquisition is evidence of the strong pipeline of transactions that
Belvoir highlighted in its trading update on 7 February 2018.
This acquisition, which comprises 624 managed properties within
Welwyn-Garden-City and St. Albans, will add almost GBP1.0m p.a. of
network revenue and will increase Group Management Service Fees
(MSF), Belvoir's main revenue stream from its franchisees, by
GBP400,000 in the first six years of ownership. This transaction
has been funded entirely by the franchisee's own sources of finance
and will result in the franchisee taking on the territory of St
Albans in addition to his existing Hitchin and Welwyn-Garden-City
territories.
Furthermore, three other of Belvoir's franchisees in Derby West,
Hendon and Corby have also recently acquired a local lettings
portfolio, which will add collectively GBP1.0m of network revenue
and GBP122,000 of MSF p.a., against which Belvoir provided
GBP193,000 of financial support.
Dorian Gonsalves, CEO of Belvoir, commented;
"In the recent trading update, we reported that we had doubled
the number of transactions under our Assisted Acquisitions
programme in 2017 and promised that there was a strong pipeline
expected to complete in the first quarter of 2018. We have already
delivered on that promise within just two months with these four
transactions equating to 75% of the total value of 2017 franchisee
acquisition transactions, adding around 1,335 managed properties to
the Belvoir network.
Our Assisted Acquisitions pipeline remains strong and the Board
has set itself the target of doubling the value of such franchisee
portfolio acquisitions again in 2018. Our ability to capitalise on
the consolidation in our sector is a testament to the Belvoir Group
acquisitions team which identify and facilitate such deal
opportunities and harness the entrepreneurial spirit of our
franchisees."
For further details:
Belvoir Lettings PLC 01476 584900
Dorian Gonsalves, Chief Executive Officer investorrelations@belvoirlettings.com
Louise George, Chief Financial Officer
Cantor Fitzgerald Europe
Rick Thompson, Philip Davies, Will Goode
Corporate Finance 0207 894 7000
Caspar Shand Kydd, Alex Pollen
Sales
Buchanan
Charles Ryland, Vicky Hayns, Madeleine Seacombe 0207 466 5000
Note to Editors:
About Belvoir Lettings PLC
Founded in 1995 and listed on AIM in 2012 (BLV.L), Belvoir
operates a nationwide property franchise group with 300 offices
across four brands offering a range of specialist services in
property rental, property management, residential lettings, buy to
let and property sales. With its Central Office in Grantham,
Lincolnshire, the Group manages over 58,000 properties and reported
revenue of GBP9.9m in 2016 making Belvoir the largest property
franchise group in the UK.
About Belvoir Hitchin
Having opened in 2008, Belvoir Hitchin was resold to the current
franchisee in 2014 and since has grown by over 50%, now ranking as
the 8(th) largest Belvoir office. In 2016, the franchisee opened a
second office as a cold start in Welwyn Garden City and has built
up that business to be the 60th largest Belvoir office which is an
outstanding achievement for a new office within just 20 months.
This acquisition will add a third territory and substantially
increased the Belvoir market share within the existing two
territories.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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