Residential Estate Agency & Lettings Management Business For Sale

Business description

established residential estate agency and lettings management business was founded by the current owners more than three decades ago. Since that time it has developed to be recognised as the agency of choice in its locale, an highly affluent area of North West London.

Operating from two superbly appointed, prominent offices, the agency enjoys both a strong sales and lettings income stream, the latter of which generates circa 20% of total revenue. Being within the M25 and with good transport links to Central London, the area will always be attractive for both corporate and personal lettings. In recognition, the business has always operated its lettings operation as a separate department, providing for the correct amount of focus on this important function.

Circa 120 residential sales are completed in a typical year. The breakdown across the various price bands is as follows:

Property Selling Price %ge of total completions
Up to £499,999 50%
£500,000 to £999,999 34%
Above £1,000,000 16%

The above table displays well the strength of the local property market with half of the transactions completed being at or in excess of £500,000.


Equipment

Full networked IT services are provided at every desk in both offices.


Customer Service

The highest levels of personal and discreet service sit at the heart of the business’s client engagement strategy. Many clients are high net worth individuals including stockbrokers, investment bankers, Premiership footballers and celebrities. They demand and do receive an exemplary and confidential service.

Key Strengths

This is a strong sales and lettings business, with unrivalled local knowledge. Recognising clearly the demands of today’s buyers and sellers, a proactive service is provided ensuring that transactions are completed in the shortest time possible.

Almost all visits to view are accompanied, which ensures that properties are presented in the best possible light. Furthermore, the business actively engages with solicitors which prevent potential delays in this aspect of the transaction.

Circa 20% of total income is generated through the lettings arm. This provides for a very robust business.

Property information

Location:

The business operates from two locations the lease arrangements of which are as follows:

• Office One. The lease expires in 2009. Current passing rent is £29,500 per annum, although two upstairs residential apartments are sub let which reduces the net rent to £12,100 per annum. Business rates are circa £8,000 per annum.
• Office Two. The lease expires in 2009. Current passing rent is £10,400 per annum. Business rates are circa £4,000 per annum.

The company enjoys sound relationships with the landlords at both addresses. Both leases are readily renewable.

Other information

Expansion potential:

A new owner, with renewed vigour, will be able to grow the business and expand the range of services from a very sound base. Potential growth avenues include the establishment of a financial services operation. This would not only offer mortgages but the full range of services including savings, life insurance and income protection plans.

The company has recently been instructed by a plc property developer as sole agents for an exciting new project. This will generate fee income in excess of £120,000 plus ‘spin offs’. Over the years the company has acted for most leading and local developers. It is often called upon to provide consultancy advice to these developers.

Property services can also be provided, typically through third parties, to include burglar alarms, locksmiths, construction services, removals and interior design. Busy people who do purchase many of the homes sold will welcome these additional services.

Competition / Market:

Operating within the lucrative and competitive residential property market, the business has always recognised the importance of a strategic approach to advertising and marketing. A professionally designed, maintained and hosted website is utilised which serves as a major ‘shop window’ to the business. Flyers are regularly produced which are delivered to local homes and businesses. In addition a monthly newsletter, of circa fifteen thousand copies, is distributed.

Support & training:

A full period of training, handover and familiarisation will be provided to ensure a smooth transition to new ownership. Furthermore, and subject to separate arrangements, the current owners will be happy to operate in an ongoing consultancy capacity for an extended period of time, if required.

Reasons for selling:

The owners have reached the stage where they wish to dispose of the business to enable them to concentrate on other activities.