Confirmed – Oakley Capital invests in Dexters

Oakley Capital, a mid-market private equity firm, has invested in major estate agency chain Dexters.

Staff were informed yesterday afternoon. A City Trading statement was issued this morning.

There was speculation at one stage yesterday that Dexters had been sold, but this is not the case.

Sources have said that Oakley Capital Investments  are planning to invest, or will invest, up to £130m in Dexters, but the total investment figure has not been confirmed. EYE has been told that ‘via Oakley Capital the estate agency will have access to very substantial financial backing’.

Oakley Capital Investments are investing an initial £13m into Dexters, and this is part of a planned series of investments into the company.

This investment will be used to facilitate a major expansion drive by Dexters which will include expanding the firm’s branches from the current 70 across the capital, including 12 in prime central London, to over 100 branches over the next three years, along with the recruitment of an additional 400 new staff during that period, adding to the existing 1,200 full-time staff.

The new branches and staff are in addition to the new staff and offices already announced to date, as Dexters looks to create London’s largest estate agency group, with a view to increasing market share.

Jeff Doble, founder and chairman of Dexters London Limited, commented: “Despite the challenges of Brexit and Covid-19, Dexters has continued to build market share and presence across London with new office openings, consistent rises in our sales and lettings performance and an increasing number and quality of new property instructions.

“This is testimony to all our colleagues working tirelessly to look after our clients and focus on sustaining the growth of the business. Our vision has always been to be the No.1 estate agency in London and as we look to move to a new level, we have decided to partner with Oakley Capital to help us work towards our ambitious long term plans.”

Peter Dubens, managing partner of Oakley Capital, said: “Oakley’s investment success is built upon backing proven, entrepreneurial, founder-led management teams – our partnership with Jeff and the Dexters team fits this mould.

“The company’s focus, drive and spirit of collaboration has delivered performance where others in the sector have faltered. We look forward to being a part of Dexters’ next phase of growth, contributing our proven expertise in M&A and digitisation, and drawing on our experience in the property sector.”

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26 Comments

  1. Whaley

    That’s been on the cards for some time now with some clever acquisitions

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    1. Chip Wiffler

      Cue Gary Barker mysteriously leaving Connells for personal reasons to join Dexters…….?

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      1. smile please

        Gary has Joined Connells to overlook the the Countrywide integration

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        1. Chip Wiffler

          Yes, I was trying to be clever…….insta fail accepted 🙂

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      2. sandram

        Gary’s back at Countrywide as the IT Director not at Dexters, it was just announced.

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        1. Whaley

          Think you mean Connells , albeit just a matter of time for Countrywide too by the likes of it

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    2. iainwhite87

      The price tag seems very low to me ?

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      1. bestandfinal51

        approx 1.5+ mill an office? Appears quite decent.

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    3. majortom1

      Pains me to say-quality outfit.

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  2. Seller0169

    I heard Paul Smith has bought them

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  3. MarkJ

    Hope the staff were told before they read it on here….

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  4. smile please

    I know of another multi office firm about to announce the same.

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  5. majortom1

    Was that not about the same price for CWD. I know where id get the best return from….

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    1. Kyran

      I agree. Quite clearly the Connells / Countrywide deal has much more upside potential but I’m sure Oakley will also do well here.

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      1. majortom1

        Indeed but the effort needed in one is not as much as needed in the other

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  6. paulgbar666

    There will be much consolidation and amalgamation in the LA industry.

    Agents building one stop shops better able to manage the whole transaction process and prepared for regulations.

     

    The better capitalised LA wilk be able to comply with everything that the industry is due to ve subjected to.

    A bit like IFA; there will be far fewer LA but far more effective ones.

     

    The days of the little LA are over.

     

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    1. Chip Wiffler

      Sorry Paul.  I can’t think of a single example of a corporate megabeast in this industry that outperforms a (quality) small to medium sized independent on service levels.  It doesn’t exist and I don’t see that changing.  Service levels are rarely improved by scale especially when the puppet masters are motivated by profit before people.

      Economically and socially, this country is going through an enormous change – just hope that it’s pupation rather than ecdysis.

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      1. paulgbar666

        I admire your optimism.   Industry costs will make it extremely difficult to sustain.   As an analogy smaller LL and LA will find it more difficult to sustain their business.   Big is inevitably beautiful.   But only because those with capital are better able to survive the many feckless industry participants. Dodgy tenants and LA can destroy LL. Only Larger LL will survive. Larger LL and LA will prosper because they are more resilient. Small LL like me can’t survive the new penal regulations. Which is why I’m getting out of the game. I know I can’t compete with big money who aren’t really that concerned with rent defaulting and extensive eviction processes. The big boys can afford such losses. Not so us littleuns!!   Like what happened when the dinosaurs were killed off us littleuns retreat underground and wait for things to settle. We know we can’t compete with the big boys and won’t bother trying. Eventually the big boys will be brought down by rent controls and intolerable eviction processes.   This happened all before in the 60’s. The big boys will have their day in the sun before Govt policies bring them down.   Then the rise of the littleun will occur again.   In about 10 years time this will occur. In the meantime best the littleun adopts a very low profile!!  

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        1. Jay2Oh61

          Sorry but I couldn’t disagree more Paul. The bigger agents will struggle with their inadequate ‘call centre’ service, as well as their cheaper and less knowledgeable staff. Smaller Landlords still, and will continue to, make up the majority of the PRS for at least another 15/20 years, as the Build to Rent sector struggles to emerge, with it’s own red rape and bureaucracy. Emerge it will, but in the meantime there is a market for the small agents to sweep up from the cumbersome corporate mega beasts. The majority of those Landlords want to deal with the same local quality and experienced business owner, who they truly feel acts for them in an efficient and diligent way, and at a fair price. It’s true to say that price is increasing, but then so is the corporates pricing too. I’m comfortable with handling new regulation, I’ve had to evolve year, after year, after year, and  my business has the agility to evolve because it is run efficiently, affording clients a far higher service level than any corporate I’ve come across. If Covid has taught us anything it’s the value of local businesses. This is one industry where that matters more than most. My advice to all the smaller independents is your value will increase more and more over the next decade and Dexters price of today will look a steel.

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          1. paulgbar666

            An interesting perspective which is unfortunately at odds with what is going on with the LA industry.

            The little LA like the little LL is up against it with overwhelming penal regulations.

            I just can’t see the little operators surviving.

            But I guess time will tell as the scheduled even more ridiculous regulations are introduced over the next few years.

            The sector is returning to the 60 and 70’s when the PRS was less than half what it is today.

            This soon to be state of affairs will be unviable for many when the tenant finally consolidates their whip hand over the LL like 40 years ago.

             

            I personally want to be gone before this situation comes to fruition.

             

            Your client base will be much reduced and I doubt you will be able to compete with the big boys.

            Time will tell!

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            1. Jay2Oh61

              I can see why you see the bigger picture as you do. I guess my point is it depends how good you are.

              My business has doubled it’s management portfolio in the last 5 years, with all new business coming from Landlords disillusioned with corporate inflexibility and conveyor belt service. If you work hard, evolve with new legislation / new tech and operate on the front foot, there is and will always be a place for quality independents.

               

               

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              1. paulgbar666

                I don’t disagree with your contentions.   My point is that Govt will make it impossible for the little man to operate . Govt despises little LL and little LA. It wants to corporatise the whole PRS.   That way it receives more Tory Party funds. Govt doesn’t want the little man to survive. If it did it wouldn’t be trying to eradicate small LL who are your lifeblood. Without those LL you won’t have a business. Did you contribute to the JR against S24 cos I did? Many LA are losing LL clients due to S24. How does that help your business!? Very few LA made any contribution to that JR……………..strange!

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  7. Hillofwad71

    Fair play  to Jeff Doble he has grafted .Come a long way since Bancroft Groves

    The sector is on fire as private equity is  being thrown  into the sector.

     

    I wonder if Oakley had  cast their eye  over Foxtons and decided there was too much competiton and  a battle on their hands to extract

    Hoskings & Partners who played a pivotal role in the  Connells / CWD deal hold 10% of Foxtons

     

    Fasten your seat belts  the M&A activity is far from over

     

     

     

     

     

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    1. majortom1

      whose next ?

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  8. Mrlondon52

    They must sense opportunity to cross-sell and expand in the mid market and take share from Foxtons.

    Looking at their portfolio they have nothing similar – closest is a minority stake in a European portal.

    Will be fascinating to see what they do with it.

    And congrats to the Dexters team.

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  9. Robert_May

    I can take  a pride and considerable satisfaction in this. It *****-a-snook at the people who ever questioned my faith that Jeff Doble would deliver everything he said he would. I put my large male chicken (**** gets  Mary Whitehoused out) on the block when I agreed a deal with Jeff in 2001 ut there was an obvious determination, work ethic and professionalism about him that  told me he  would do it, do it large and do it well

     

    BIG RESPECT and congratulations from me

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