One of Foxtons’ major shareholders has increased its investment in the estate agency group, taking its stake above 7%.

Canadian investment company Aimia Inc. now holds 21,014,187 Foxtons shares, representing 7.1% of the voting rights.

The latest regulatory filing shows Aimia has increased its position from the previously disclosed 6.9%.

Aimia crossed the 7% threshold on 29 September and notified Foxtons on the same day.

The filing describes the change as an “increase in ownership position” but gives no explanation for the decision to increase the stake.

The move is particularly noteworthy given Aimia’s plans to establish a London quotation and its stated ambition to pursue further investments.

Aimia eyes further investment

Aimia is already listed on the Toronto and Johannesburg stock exchanges and announced plans in August to seek admission to London’s AIM market.

At the time, executive chairman Rhys Summerton said a London quotation could help the investment company attract new investors and make further investments in target companies.

He said: “Consistent with our strategy and focus of enhancing shareholder value, we have explored becoming AIM quoted and believe that it will enhance our liquidity, attract new investors, and facilitate making investments in target companies.

“We look forward to becoming AIM quoted.”

Aimia has not identified Foxtons as a target for further investment. There is also no indication that it intends to make an offer for the estate agency group.

However, its decision to increase its Foxtons holding means its position is likely to attract further attention as it develops its UK investment strategy.

Foxtons steps up acquisition drive

The increased stake also comes as Foxtons pursues its own acquisition strategy.

Foxtons recently completed four lettings-focused acquisitions, with Birmingham a key target for further growth.

The group acquired Maguire Jackson and Davidson Estates in Birmingham. It also bought Warren Anthony in Watford and a lettings portfolio in the Reading area.

Foxtons will pay an initial £4.8m for the four deals. Deferred and contingent consideration of up to £1.2m could take the total to £6m, subject to performance.

Together, the acquired businesses generated unaudited revenue of £3.2m in their most recent financial years.

The Birmingham deals significantly expand Foxtons’ presence in the city. It entered the market earlier this year through the acquisition of FleetMilne.

Maguire Jackson adds a city-centre lettings operation, while Davidson Estates extends the group’s reach into Edgbaston.

Foxtons plans to bring its Birmingham businesses together under the Foxtons brand later this year.

Chief executive Guy Gittins said: “We entered the strategically important Birmingham market earlier this year, establishing a foothold in the UK’s second largest city and creating a hub from which to grow across the wider region.

“The acquisitions of Maguire Jackson and Davidson Estates demonstrate the progress we are making to build scale in Birmingham.”

More acquisitions on the agenda

Foxtons is also building on previous acquisitions in Watford and Reading.

Warren Anthony will become part of its Watford operation, formerly Imagine Property Group. The Reading portfolio will join the business previously acquired from Haslams.

Foxtons expects the four latest acquisitions to contribute to earnings from 2027.

The group is targeting a 20% return on invested capital once it delivers the planned synergies.

Foxtons said it retains funding capacity for further acquisitions and continues to target lettings businesses that complement its existing operations.

Gittins said: “We continue to see a strong level of acquisition opportunities and remain focused on high-quality, lettings-focused businesses that strengthen our existing operations, grow recurring Lettings revenues and deliver attractive returns for shareholders.”