Property Industry Eye has learned that LSL has shut down its acquisitions department.
Following rumours that its acquisitions team are being made redundant, we approached the company for details.
Helen Buck, Executive Director, Estate Agency for LSL Property Services plc said in a statement:
“The acquisition of lettings books is no longer a strategic priority for the Group.
“We confirm we are in discussion with two members of the Acquisitions Team and we are working closely with them to try and secure alternative opportunities within the LSL Group of companies”.
Separately, it is rumoured that LSL may have revived discussions with Countrywide. The Group pulled out of acquisition talks last March, sending the share price in Countrywide crashing.
We asked LSL for comment but David Stewart, Group CEO of LSL Property Services plc replied:
“We do not comment on market speculation.”
Countrywide shares plunge 50% after LSL pulls deal, while other property shares also topple
Interesting that they are not actively seeking lettings books, I get not wanting to acquire brands/premises/additional staff but surely synergy makes a lettings book a no brainer at that scale. If ( outside of the south east ) the average managed property sits at a low ball 70+vat pcm income and they paid say 2k per managed instruction in buying a book after around 30 months and assuming a more or less fixed overhead it’s all gravy.
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LSL have the worst reputation for agreeing a purchase, getting people’s hopes up and then dropping the price at the last minute. They don’t deserve to buy people’s business that they’ve spent years building up. Stopping acquisitions is a blessing.
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Interesting PIE is running this story but has not done a story that is rumoured on other forums regarding Purplebricks losing a court case which shows that the ‘Self Employed’ model is indeed ‘Employed’ and PB will be in the mess with outstanding pay / benefits / tax ?
As i say rumours but be good to hear PB’s side if not just to deny.
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