LSL enters new joint venture

RESIDENTIAL property services firms LSL and Connells have taken a stake in LMS Group as part of a new joint venture.

The deal sees LSL and Connells investing in Cybele Solutions Holdings, the parent company of LMS Group which operates Legal Marketing Services and LMS Direct Conveyancing.

It will create an equal share joint venture between York-based LSL, Connells and the existing management team at LMS Group, a provider of conveyancing and remortgage panel management services.

LSL will pay £672,000 for its 33.33% share in the venture which it will fund from existing banking facilities. The deal includes options that will allow LSL and Connells to increase their stakes to 50% each.

At the end of March LMS Group had assets of just over £4m and made a profit after tax for the year of £591,000.

In a statement, LSL said: “This investment supports LSL’s strategy to grow long term profitability in the provision of residential property services in the UK, by identifying value enhancing opportunities. Further, the investment strengthens LSL’s relationships with its key lender clients.”