Foxtons (LSE:FOXT) has completed four lettings-focused acquisitions in Birmingham, Watford and the Reading area, adding £3.2 million of annual revenue as the estate agency group expands its operations outside London.
The acquisitions were funded through Foxtons’ revolving credit facility and are expected by the company to be earnings accretive from 2027.
Foxtons said the transactions form part of its strategy to increase recurring lettings revenue and expand in selected regional markets. The group is targeting returns on invested capital in line with its 20% target.
Foxtons Expands Birmingham Operations
In Birmingham, Foxtons has acquired Maguire Jackson and Davidson Estates, increasing the scale of its existing operations in the city.
The company plans to combine the acquired businesses under the Foxtons brand. Foxtons said the transactions increase its presence in the Birmingham lettings market, which it views as having favourable long-term fundamentals.
The acquisitions also extend the group’s regional expansion beyond its established London operations.
Watford and Reading Acquisitions Increase Regional Presence
Foxtons has also completed acquisitions in Watford and the Reading area, adding to existing operations in both markets.
The Watford transaction increases the scale of the group’s lettings business in the area, while the Reading acquisition expands its presence in the commuter market outside London.
Foxtons said the four transactions leave additional capacity available under its revolving credit facility for potential further bolt-on acquisitions.
Foxtons Focuses on Recurring Lettings Revenue
Foxtons Group plc is a London-headquartered estate agency operating across lettings, property sales and financial services.
Founded in 1981, the group operates a branch network across London and selected regional markets. Its business model includes a focus on recurring lettings income supported by its operating platform and hub-and-spoke structure.
The latest acquisitions increase Foxtons’ regional lettings operations while adding £3.2 million of annual revenue. The company expects the transactions to contribute to earnings from 2027 and is targeting returns on invested capital in line with its 20% objective.
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