LSL Property Services has confirmed that it is reviewing strategic options for mortgage broking business Pivotal Growth.
LSL held a general meeting in West London yesterday where shareholders voted – through proxy – ‘to approve LSL receiving uncapped proceeds of sale arising on a potential future disposal of its investment in the Pivotal Growth joint venture’.
Pivotal Growth was formed earlier this year through a joint venture between LSL and Pollen Street Capital in an effort to become a leading national mortgage broker earlier this year.
It was announced in April that in total £200m would be made available to fund acquisitions.
As part of the joint venture, LSL committed £33.5m to support the acquisitions made by Pivotal Growth, while Pollen Street Capital put up a further £62.4m in funds. Pivotal Growth also set out to raise more cash through external debt finance.
Thursday’s meeting was set-up to seek shareholder approval to remove a cap on any proceeds from any future exit from the JV – likely to be within a three to six year period.
Shareholders at the meeting agreed to remove the cap.
So both LSLand Foxtons comig to the market at the same time to dispose of their mortgage broking businesses at the same time
.Maybe they will be getting a call from Vic ? Offering to pay part of the consideration in Bricks shares !
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No wonder LSL has been hawking their mortgage services to firms like PFG and others. This could be highly embarrassing for EA firms who fell for their sales pitch as it looks as if the contracts were signed to boost the value of LSL’s mortgage arm, before being sold off.
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So which business next for sell off- my money is on Vibrant Property Services ….
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Spent too much money sending their staff on courses learning how to be particularly rude, arrogant and unhelpful I guess.
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