Estate agent Thornley Groves sells to Lomond Capital
SOUTH Manchester estate agency chain Thornley Groves has been snapped up by ambitious property management group Lomond Capital.
Financial terms of the acquisition were not disclosed, but the deal is the largest made by Edinburgh-based Lomond, which is chaired by North West legal grandee Roger Lane-Smith, former senior partner of DLA Piper.
Thornley Groves’ owners Michael Groves and Jason Watkin will be remaining with the business and are retaining some equity.
Last year the Altrincham-based company’s operating profits rose 44% from £576,089 to £829,025. Revenues grew 9.5% to £4.1m.
Mr Groves will become the chairman of the Lomond Group in Manchester and Mr Watkin chief executive.
Thornley Groves was established in 1991 from a single branch in Altrincham. It now has eight offices, employs 80 staff and sells £250m of property a year.
The agency handles more than 3,000 lets and manages more than 1,600 properties for landlords across central and south Manchester.
Mr Groves said the deal would fuel growth at Thornley Groves: “One of the key motivations for making this deal with Lomond is our absolute belief that estate agency, especially residential lettings and property management, needs change in order to deliver a more professional asset management service and deliver a broader range of client services.
“Both of these things will be demanded by both institutional and private landlords as the private rented sector continues to grow. This can only be achieved if consolidation takes place in our industry. The consolidation play is Lomond’s key strategy and we are excited at the prospect of leading this transformational change in Manchester.
“The deal is a fantastic opportunity for us to grow our business across Manchester. It will enable a period of expansion through acquiring other businesses and will allow us to offer other related added-value services to our existing customers. The deal will also help boost our growing estate agency business.”
The acquisition is Lomond’s second in the region, having acquired Manchester-based Penny Ashton last year. It takes the group’s property management portfolio to £450m in the North West and £1.5bn in total.
Stuart Pender, chief executive of Lomond Capital, said: “Manchester has a very attractive property market offering with the largest private rental sector outside London. It has been a key market for Lomond Capital for some time now.
“We have been looking for a high quality and ambitious firm with a strong brand to be at the centre of our growth strategy in Manchester.”
