The second largest factoring business in Scotland has been created following the takeover of Life Property Management (LPM) by James Gibb Residential Factors.
The “significant deal” has resulted in the number of properties under management by James Gibb growing by nearly 70 per cent to more than 44,000.
The enlarged business will have 88 staff across three cities. Both James Gibb and LPM enjoy a strong presence in Edinburgh, Glasgow and Aberdeen.
David Reid, the owner of LPM – which has built strong relationships with major housebuilders since its formation in 2003, handling the factoring of key developments for their residents – will become group managing director of James Gibb. He will report to chief executive Douglas Weir.
Financial terms surrounding the deal have not been disclosed.
Reid said: “The factoring sector in Scotland can improve dramatically. By coming together with James Gibb, we can deliver the quality standards, technological innovations and commitment to service that owners expect.
“Our business has been on a dramatic journey of growth and this latest step will ensure we are part of exciting change for the better right across Scotland.
“Owners should expect transparency, high quality service and value for money from their factors, and our promise to deliver that has helped us to grow as quickly as we have.”
Weir said: “The factoring sector in Scotland is ripe for consolidation. We have looked carefully at the market and the acquisition of LPM is a statement move designed to create genuine competition and differentiation across Scotland.
“It brings together two of the best factoring firms in the country, which can only benefit our owners.”
He added: “We have seen the lettings sector consolidate dramatically and we expect to see factoring go through a similar process of change.”
James Gibb is to roll out its e-learning platform across all staff and extend its customer service and compliance teams into the LPM client base. The latter firm’s “ground-breaking approach to factoring” will be integrated into all parts of the new James Gibb operation.
James Gibb Residential Factors is a trading name of James Gibb Property Management, which is owned by Strathspey Capital Limited. The business currently manages more than 26,000 properties across Scotland.
The Gibb family business can be traced back through several generations to 1872.