PROPERTY management firm Lomond Capital has secured an investment from a private equity firm to accelerate its already rapid expansion.
MML Capital Partners, a European and US investor, has bought a minority stake in Edinburgh-based Lomond which has acquired more than 20 property rental businesses since it was launched in late 2010.
Although the amount invested is not being disclosed, MML typically invests a minimum of around £8 million in businesses.
Lomond said the investment would enable it to build on its current momentum and accelerate future growth in the UK’s rapidly expanding residential rental property market.
Since Lomond launched, it has built a significant presence in the Edinburgh, Aberdeen and Manchester lettings markets, and has 7,500 properties and £1.6 billion of assets under management.
Its strategy is to acquire and grow high-quality regional property asset management businesses in specific locations, then to provide additional services to help landlords maximise returns from their investment in the private rental sector.
Stuart Pender, chief executive, said: “The deal with MML allows us to accelerate our growth in this expanding market and we are excited about the opportunities that working with MML will bring to the business. MML has a strong track record in funding ‘buy and build’ businesses and we look forward to working together to expand our business further, especially south of the Border.”
Ian Wallis, managing partner of MML UK, said he had been impressed by the management team at Lomond and the “significant growth potential” in the UK private rental sector.
Lomond Capital has also confirmed the appointment of chief financial officer Mike McGill, who joins from Murray International Holdings (MIH), where he was group finance director.
His appointment follows the recent recruitment of Yvonne Curran, who also joined from MIH, as head of group finance.
The announcements come less than a fortnight after Lomond Capital swallowed a further three rival businesses.
It bought Langley Serviced Apartments in Aberdeen, as well the lettings book of Alex Hutcheon Legal & Estate Agency in the city to take its portfolio there to 1,600 properties.
Lomond is consolidating the various lettings brands it owns in the region under a single name – Stonehouse.
The firm also acquired Vital Space’s Manchester city centre lettings business, which will be absorbed into its Thornley Groves operation in the city. The deal takes the total number of properties managed by Thornley Groves to 2,600. Lomond did not say how much it paid for the businesses.