First venture outside London’s commuter belt due to the creation of many new city centre homes in Birmingham – and the HS2 factor
Foxtons Group plc is venturing outside London’s commuter belt for the first time with the £4m purchase of Birmingham estate agents FleetMilne, the firm said today.
The London-based company said it had been lured north by the significant volume of new homes being created across multiple redevelopment schemes in Birmingham, coupled with the promise of improved HS2 transport links in future.
Foxtons, known in the capital for its eye-catching fleet of branded Mini Cooper cars, said the move aimed to “expand the group’s footprint into Birmingham, the UK’s second largest city and a market with significant growth opportunities.”
The deal is structured around a £3.2m initial fee with a further £800,000 due after a year provided performance targets are met.
Around 95% of FleetMilne’s business is lettings, with the bulk of its activity focused in central Birmingham.
Guy Gittins, CEO of Foxtons, said: “This is a significant move for Foxtons as we expand outside of the London commuter belt for the first time.
‘A major market with strong long‑term potential’
“Our successful acquisitions in London’s commuter towns have shown how our industry-leading platform can unlock value, making Birmingham – a major market with strong long‑term potential, supported by extensive redevelopment and increasing connectivity with London – a natural next step.
“With the Foxtons operating platform behind it, FleetMilne provides a strong foundation for organic growth and enables further bolt‑on acquisitions as we build scale and deliver attractive returns.
“FleetMilne has built an excellent reputation and is a natural fit for Foxtons as we continue to acquire high‑performing lettings businesses. I look forward to welcoming the FleetMilne team into Foxtons.”
‘Foxtons is the right partner for the next stage of our journey’
Nicola Fleet-Milne, MD of Fleet-Milne, said: “Having built FleetMilne over the past 20 years into a leading lettings business in central Birmingham, it was important to find a partner who shared our ambition for the market and our commitment to outstanding service.
“Foxtons is the right partner for the next stage of our journey, and I am genuinely excited about what we can achieve together.
“Foxtons’ scale, technology and expertise will give us the tools to accelerate our growth in Birmingham and enhance the service we provide to landlords and tenants. I am looking forward to leading the business through this next chapter and unlocking the significant opportunities ahead.”
