Acquisitive property group Lomond Capital has bagged a £37.5m warchest to go prowling for new sales and lettings agency targets in London and on the South coast of England.
The firm specialises in consolidation, and has bought around 30 estate agency businesses since it started life 2010 – mostly in Scotland, the North and Midlands, amassing a rental portfolio worth over £2.5bn and a staff roster of 300+; it currently sells more than £600m-worth of property per year. Recent agency acquisitions include Braemore in Edinburgh, Thornley Groves and Shepherd Gilmour in Manchester, and John Shepherd and Marwood Homes – which it merged togethor – in Birmingham.
Now, Lomond has secured £37.5m to shift its search to southern parts, appointing a new Group Managing Director to oversee the geographic “growth surge”.
Clydesdale Bank will provide an acquisition facility of up to £25m, while Tosca Debt Capital, a Manchester-based debt fund, will provide secondary facilities of up to £12.5m.
Bruce Evans – previously Managing Director of Countrywide Plc’s operations in London and South of England – has been brought in as Group Managing Director to run the show.
You may remember that Lomond recruited former Douglas & Gordon MD Ivor Dickinson back at the starts of 2015 with a remit of “accelerating Lomond’s presence in the South of England.”
This new finance deal has specifically been secured to support Lomond’s growth strategy in the South of England. It follows previous private equity backing from MML Capital Partners in 2014 to accelerate growth in the UK residential rental property sector. The group says it will “continue to expand in existing markets” including Aberdeen, Manchester, Birmingham and Edinburgh.
Stuart Pender, Chief Executive of Lomond Capital: “The outcome of the fundraising process will enable us to further expand our geographical footprint in the South Coast of England and London. We very much look forward to working with Clydesdale and Tosca in the months to come.
“Bruce has significant experience within the sector and a very strong reputation for developing and managing rapid growth within a multi-regional business. We are delighted to have attracted an individual of such a strong calibre and I very much look forward to working with Bruce over the next phase of growth with Lomond Capital.”
David Henderson, Regional Head of Corporate & Structured Finance at Clydesdale Bank: “We are very impressed by what Lomond has achieved to date and its ambition for further expansion into new markets. We are delighted to have had the opportunity to provide funding and be a part of this growing success story.”
Gary Davison, Partner of Tosca Debt Capital: “We are delighted to be able to support the management team of Lomond in pursuing their ambitious growth strategy. They are a strong team with a clear vision and are operating in a market sector with tremendous potential. Our funding will allow them to achieve step-change growth and ensure they are able to capitalise on opportunities as they arise.”