Foxtons acquires two London-based estate agencies

Estate agency Foxtons has acquired two London-based agencies for a total of £10.55m as part of the group's efforts to deliver on its strategy and reinforce its position as the capital's largest lettings agent.

Foxtons said on Thursday that the purchase of Gordon & Co and Stones Residential, based in South and North London, respectively, represented "another significant step forward" in its strategy to deliver "attractive" total returns on invested capital and improve the resilience of its revenue stream.

The London-listed group highlighted that the acquired businesses were "high-quality estate agents", with strong lettings businesses that together generate over 80% of total combined revenues from lettings services across 2,500 tenancies.

Foxtons believes the acquisitions will be earnings enhancing in 2022.

Chief executive Nic Budden said: "Acquiring Gordon & Co and Stones Residential is a great opportunity for Foxtons to expand our coverage and reinforces our position as London's largest lettings agent.

"Since 2019, we have acquired six lettings portfolios and grown our tenancies by 40%, which demonstrates good progress against our strategy to generate attractive returns for our shareholders. We now serve over 27,500 tenancies, which alongside financial services, deliver resilient and recurring revenues and represent around 70% of our group turnover."

As of 0835 BST, Foxtons shares were up 2.04% at 36.58p.

Reporting by Iain Gilbert at Sharecast.com