Lomond has acquired Kinleigh Folkard & Hayward (KFH) in a deal reportedly worth millions in a major shake-up of the London property market.

The move follows Lomond’s recent partnership with alternative asset manager ICG, which acquired LDC’s stake in KFH days earlier.

KFH, a stalwart of the capital’s real estate sector, was founded over 45 years ago and operates more than 60 branches across key London boroughs.

Despite its stature, KFH reported a steep drop in performance earlier this year, with pre-tax profits plummeting to £753,000 in 2023 from £4.7 million the previous year. Revenues also fell to £74 million from £82.5 million, reflecting broader market challenges, including the fallout from the 2022 Mini-Budget and rising interest rates.

FINANCIAL SERVICES

The acquisition adds nearly 14,000 managed properties to Lomond’s portfolio, along with KFH’s build-to-rent, block management, surveying, and financial services offerings.

Lee Watts, founder and managing director of Kinleigh Folkard & Hayward, says: “During the last 45 years we have grown the KFH brand across London under our own steam, underpinned by great people delivering excellent service with care.

“Our new partnership with Lomond provides the opportunity to grow even further sharing our values of great service and a people first approach into more homes across the capital.

“We are excited by the vast opportunity in continuing our growth journey with the support of Lomond, it really is the beginning of a new chapter for the KFH brand and our ambition to be the go to choice of agent across London.”

Ed Phillips, Lomond chief executive, adds: “As our first acquisition under our new partnership with ICG, it’s a big one and I am delighted to have secured the acquisition of Kinleigh Folkard & Hayward.”

The transaction will formally complete at the end of January 2025.