GLASGOW’S Grant & Wilson has been carved up in a three-way deal as consolidation continues in the property management sector.
Following an initial approach by Strathspey Capital, the bulk of its businesses have been sold to Strathspey and its sister company, Lomond Capital. Lomond was set up in 2010 as an acquisition vehicle in the residential lettings market, followed by Strathspey a year later with its focus on factoring.
I am delighted we have been able to secure this acquisition
Lomond – which manages properties valued at £2 billion across Scotland and the north of England – is taking over the Grant & Wilson lettings businesses in Aberdeen and Edinburgh, while the Glasgow lettings operation is being taken over in a separate deal by DJ Alexander.
At the same time, Strathspey has acquired factoring businesses in Aberdeen, Edinburgh and Glasgow through its operating subsidiary, James Gibb Property Management. The deal marks Strathspey’s third acquisition in three years, and takes the total number of units under management to roughly 23,000.
Lomond is already the largest letting agent in Edinburgh, where it trades under the Braemore banner. Stonehouse, the company’s lettings brand in the north-east, will add 300 properties to take its portfolio to 2,100.
The deal comes as Lomond, headed by chief executive Stuart Pender, prepares to launch in at least two more UK cities later this year. In addition to its Scottish operations, the firm has built a significant presence in Manchester as well as a foothold in Birmingham.
Pender said: “I am delighted that we have been able to secure this acquisition and integrate the Grant & Wilson and Bruce & Partner portfolios into our existing businesses in Aberdeen and Edinburgh.
“We believe both cities offer great opportunities for buy-to-let investors with very positive returns from income and capital growth, and we will continue to invest in these markets over the coming months.”
The carve-up was triggered by an unsolicited approach to take over the factoring business of Grant & Wilson.
Graham Mitchell, director at the firm, said: “It is my opinion that there will continue to be consolidation in the factoring and leasing market, and this deal is in the best interests of our staff and clients.”