Hawthorn Capital has acquired Xenia Property Group as it steps up its expansion across the UK property services sector.
The letting agency acquisition gives Hawthorn a business managing more than 4,000 units. The portfolio spans block management, residential lettings and student accommodation.
The deal was completed for an undisclosed sum.
Xenia employs 65 people and operates through Xenia Estates, Xenia Students and Xenia Lettings.
The group is headquartered in Sale, Greater Manchester. It also has offices in Bradford and Sunderland.
Following the deal, Hawthorn plans to use Xenia as a platform for further consolidation. It is already evaluating additional deals across the UK.
In particular, its targets include businesses operating in block management, property management and related real estate services.
Hawthorn was founded in 2022 by Will Bainbridge. It is headquartered in the City of London and also has an office in Manchester.
Meanwhile, the investment firm is building a wider property services platform through acquisitions and investment. Technology and automation also form part of its strategy.
Bainbridge said the fragmented nature of the UK property services market presented an opportunity for consolidation.
“The UK property services market is large, highly fragmented and undergoing significant change,” he said.
“Increasing regulation, rising customer expectations and technology requirements are strengthening the case for scale and professionalisation, creating an extremely compelling long-term consolidation opportunity.
“We believe there is significant scope to build businesses of scale by combining strong existing operators with long-term capital and institutional-quality systems and operating capabilities.”
He said Xenia gave Hawthorn an established operation across several areas of the property market.
“Xenia provides us with an established platform across several areas of the market, with a meaningful geographic presence, an experienced team and a broad customer base.
“A key part of our strategy involves using technology, automation and data to reduce administrative complexity, improve productivity and enable teams to spend more time on higher-value customer work.”
Hawthorn targets more acquisitions
However, Hawthorn has made clear that Xenia will not be the end of its acquisition activity.
Bainbridge said: “There is substantial opportunity within Xenia itself, but we also see it as a strong platform for further consolidation.
“Hawthorn is actively evaluating complementary acquisitions across block management, property management and adjacent real estate services throughout the UK.
“We have a particular interest in established businesses with strong customer relationships, capable management teams and owners looking for a long-term home for what they have built.”
Following the acquisition, Xenia’s existing leadership team will remain in place. Farrah McWilliam and Michael Willans will continue to oversee day-to-day operations.
In addition, Bainbridge and fellow Hawthorn director Chanil Patel have joined Xenia’s board.
Shaun Herman is also working with the business on operational development and integration.
Hawthorn, meanwhile, will focus on strategy, governance, capital allocation and longer-term growth.
The investment firm has also established Prime Residential. The lettings and property management business operates across five UK cities.
These are London, Manchester, Liverpool, Birmingham and Leeds.
Bainbridge added: “We are pursuing a long-term, buy-and-build strategy in property services, targeting sectors where we believe capital, technology and operational expertise can support consolidation and growth.”
Finally, Blick Rothenberg and Gunnercooke advised Hawthorn on the Xenia acquisition.
