A former head of betting chain William Hill is leading plans for investment in an online agent.
David Harding, William Hill’s former CEO, is now chairman of Radius Equity, a specialist provider of tax-efficient investment products.
Investment would be in Up Estates, which has a hybrid model and wants to expand across the UK.
Radius Equity is offering investors the chance to buy a £750,000 stake in Up Estates, which has a hybrid model.
Investment is expected to be eligible for tax relief under the Enterprise Investment Scheme, which offers opportunities for equity investors to invest in unlisted businesses.
The scheme includes 30% income tax relief and potential tax-free capital gains on sale of shares.
Up Estates is a local online agent, currently based in the Coventry, Hinckley and Nuneaton area, where it claims to have market share.
It is headed by managing director Chris Maughan, an NAEA member.
It plans to open at least seven new local offices next year, with target areas including Birmingham, Leicester and Nottingham.
Radius Equity’s investment will fund the growth plan.
It said that the residential housing market is “being transformed by challenge” from online agents.
It also claimed that traditional agents “are losing market share to new low-cost competitors”.
Up Estates says it expects to list at least 600 properties this year in the Nuneaton area, double the number in 2014.
The business claims to have become local market leader within two and a half years.
Up Estates offers three payment choices – £590 upfront; £90 upfront with £750 on completion; and £0 upfront with £980 on completion.
Gary Robins, director of Radius Equity, said: “The real estate sector is evolving rapidly and Up Estates is leading the way as a regional agency with online capabilities.
“Home owners are becoming increasingly reliant on online platforms to find property, but sellers are missing out on the personalised regional service of traditional agencies.
“Online sites focused on national coverage don’t have the ability to market your property personally and cannot offer practical services such as house showings or accurate property valuations.
“Up Estates is a true hybrid, taking the best that online platforms and traditional agencies have to offer and creating a new breed of real estate agency.
“The management team at Up Estates has had incredible success in a relatively short time period.
“The areas where they plan to expand have very similar housing demographics and so the experience gained in the last couple of years will be indispensable going forward.”
600 properties at £980…
I do not know of an office that can trade with a turnover of £60K per year…
At some point on-line agents will have to increase costs or reduce the service being offered.
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600 @ £980 = £588k. Not sure where you get £60k from. But I do agree, profit for sanity, turnover for vanity.
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600 x 980 = £588,000 even taking VAT off = £490,000
Have I missed something?
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Seriously some of these people have more money then sense.
I am considering offering lettings in the new year, these individuals can feel free to invest with me and they will actually see a return!
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I like this term: tax-efficient investment products.
I’m sure that everything will be cool and not one single person will get in trouble over that kind of thing.
This time next year, Rodney, we’ll be milwionaires!
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Says a bloke who has spent his life convincing idiots to back nags!
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