Estate agent LRG lined up for £800m sale

One of Britain’s largest estate agency groups is being readied for a sale that could value the business at about £800 million – even as the sector braces for potential new property taxes in the autumn Budget.

Sky News reports that Platinum Equity, the US private equity firm that bought Leaders Romans Group (LRG) in 2022, has appointed Rothschild to oversee an auction of the company.

The process is expected to attract interest from financial investors and could take several months to conclude, with bidders likely to await clarity on fiscal policy before committing.

LRG, which operates under brands including Acorn, Chancellors, Stirling Ackroyd and Portico, trades from more than 350 branches, employs around 3,500 staff and manages 73,000 properties.

£3.6 BILLION WORTH OF SALES

Last year it handled £3.6 billion worth of sales. Some of its brands have deep roots in the UK market, with Portico dating back to 1818. The business is led by chief executive Michael Cook (main picture).

Platinum is understood to believe the company could command well over £700 million, building on a consolidation drive that has seen LRG expand rapidly through acquisitions.

The deal would be one of the largest UK estate agency transactions in recent years, in a market where most players remain privately owned and publicly traded names such as Foxtons have comparatively modest valuations.

BUDGET CONCERNS

The potential sale comes as Chancellor Rachel Reeves weighs reforms to property taxation in her November Budget.

Proposals reportedly under consideration include changes to stamp duty, a possible mansion tax and curbs to primary residence relief.

Economists have warned that the uncertainty is already weighing on confidence, with Nationwide noting a slight dip in prices last month.

Platinum Equity declined to comment.

BIG VALUATION

Russell Quirk, ProperPR — Russell Quirk, industry pundit and property guru

But Russell Quirk, industry pundit and property guru said on LinkedIn: “This is a pretty punchy profit multiple. 27x to be precise, if true.”

And Mark Hinkins, commercial director at Rex Software, added: “That’s pretty ambitious! Unless they are about to reveal to us that they have some secret, proprietary, high-growth AI Saas tech ready to roll out to the entire industry

“Chestertons acquisition was around 7.5x – you’d probably expect a low double digit multiple for a group the size of LRG. Still a big valuation.”

MORTGAGE BUSINESS

Last February Property Soup reported how Tom Davies joined Leaders Romans Group from Alexander Hall as the company’s first group financial services managing director.

That appointment coincided with LRG’s rapid growth, both organically and through acquisition.

The month before LRG had acquired Stirling Ackroyd, Alexander & Co and Peter Ball, expanding the estate agency by a further 41 branches.

At the time Davies said: “For both aspiring and existing homeowners or investors, the need for quality advice on mortgages and related products, such as life and income protection cover, has never been more important. I’m committed that we continue to deliver this to LRG’s growing client-base.”