Lettings acquisition firm makes first purchase in England

Lomond Capital, the rapidly expanding property acquisition vehicle which has been busy snapping up letting agents in Scotland, has landed in England.

The company has acquired well-established Manchester lettings agent Penny Ashton Property Management, which has been trading from the city centre since 1985, for an undisclosed sum.
 
Lomond, formed less than two years ago, says it has a strategy in place to consolidate the UK lettings market.

It has set aside a £22m war chest to consolidate the market across Manchester, Leeds and Birmingham – part of its wider £45m strategy to consolidate the market in key UK cities.
 
Lomond says it intends to increase its presence still further in the Manchester market, which has around 130,000 privately rented units and over 280 agents.
 
Stuart Pender, chief executive, said: “We have ambitious plans for Lomond Capital and the addition of Penny Ashton brings with it a wealth of experience and strong relationships across the Manchester market, giving us a solid foundation on which to build.
 
“There is a high demand in Manchester for good-quality rental property, and this has led to a high concentration of agents competing for business, and good, sustainable yields that provide investors with attractive returns. We are extremely excited about future opportunities for growth in Manchester.”
 
Penny Ashton herself will now work with Lomond in a consultancy role to assist with further acquisitions.

Day-to-day management will pass to John-Paul Case who currently heads up the lettings team. The business, like the other agencies acquired by Lomond, will form part of a distribution network for products and services including insurance, financial services and rent guarantees.
 
Ashton said: “This is the next stage of the evolution for Penny Ashton. I have had enormous satisfaction from building a successful business, and in order to take it to the next level, joining forces with Lomond Capital means that the business now has the capital strength to go on and become a key player in the Manchester lettings market.”
 
Pender added: “The Scottish and English legal systems mean that there are some differences in the way the markets operate, but the fundamentals are the same and we are delighted to be entering the Manchester market. 

“We are looking forward to bringing new products and services to our customers, and providing new career prospects to our new colleagues as we continue to grow rapidly.”