Foxtons To Be Sold? Media speculation grows

Lettings giant Foxtons has hired merger and acquisition bankers from Rothschild following pressure from shareholders to sell itself for £160m, the Sunday Times claims.

Shareholders of the London focused agency have publicly called on the board to find a buyer with Canadian investor Converium Capital and UK-based Milkwood Capital - which owns a combined 10% - having demanded a sale.

Rhys Summerton, chair of Milkwood Capital, told the Sunday Times that back in 2015, Foxtons was a £1 billion company, but that now it was worth less - and was undervalued.

Last week Master Investor, a UK based investment platform, named Foxtons as a good investment prospect - largely because Foxtons now manages a portfolio of more than 28,000 tenancies, “and that is what appeals very much to me” says Master Investor’s Mark Watson-Mitchell.

“It [Foxtons] has a policy of acquisitive growth in its Lettings side, looking to acquire, integrate and service high quality lettings portfolios,” he adds.

Foxtons has suffered losses every year since 2017 and 2021 due to London's sales slump but its letting business has traded strongly as rents in the capital have risen to record highs in recent years.

Foxtons is reported to have told the media over the weekend: “Foxtons Group has a retained financial adviser. Rothschilds is the group’s financial adviser alongside Deutsche Numis, which is also the group’s joint corporate broker together with Singer Capital Markets.”