Foxtons spends millions on acquiring rival lettings agency

Foxtons has this morning confirmed that it’s acquired a rival London lettings agency.

It has snapped up Atkinson McLeod for £7.4m: Foxtons describes Atkinson McLeod as “a high-quality estate agent, operating in Central East London across four branches, with a strong lettings business that generates circa 90 per cent of its revenues across 1,100 tenancies.”

A statement to shareholders this morning says the acquisition represents further progress against Foxtons’ strategy of acquiring lettings businesses that deliver an attractive return on invested capital, enhance earnings and improve the resilience of the company. 

Since 2019 Foxtons has significantly increased the size of its lettings portfolio through acquisition. In January Foxtons - which calls itself “London's leading estate agency” - told shareholders it had invested £10.6m in lettings acquisitions in the past year. It integrated the Douglas & Gordon lettings portfolio in early 2022 and later in the year it acquired two further lettings portfolios, adding 2,500 tenancies. 

Ex-Chestertons boss Guy Gittins, who recently became Foxtons chief executive, says: “The acquisition of Atkinson McLeod will grow our lettings portfolio, further build on our successful acquisition track record and reinforce our position as London’s largest letting agent.

"The acquisition will add c.1,100 tenancies and annualised revenues of around £3 million, demonstrating further progress with our acquisition strategy. Since 2019, we have acquired seven lettings portfolios, growing our own portfolio by 38 per cent, which now stands at more than 27,500 tenancies. We greatly look forward to welcoming the Atkinson McLeod team to the Foxtons Group.”

And Giles Atkinson, Atkinson McLeod co-founder, adds: “With its strong service ethos and high-performance culture, Foxtons is a natural fit for our business, our colleagues and customers alike. After a straightforward and smooth sales process, it is exciting to be joining such a well-respected and admired group that is focused on delivering best in class service for customers.”