Countrywide has made a dramatic move into commercial agency after agreeing a £34.1m deal to buy Lambert Smith Hampton – the firm which handled the sale of the BBC Television Centre for £200m.
The move is seen as a vote of confidence by Countrywide in the commercial property sector, which has been struggling ever since the downturn.
Countrywide said of the deal: “There is clear growth potential in the UK commercial property market. The company also believes that activity in the commercial markets is starting to improve and now is the right time to build on its position in his market.”
Lambert Smith Hampton is being acquired through a pre-pack administration which will wipe out its debts. The firm, which has offices in London and Manchester, hit trouble because of debt taken on to support an ill-fated £46m management buyout from then owner WS Atkins in 2007.
Most of the purchase price being paid by Countrywide will be used to pay off a private equity group, Sankaty, which owns the debt.
In a stock market statement, Countrywide said it would acquire all the shares “free of non-trade borrowings and related security”.
Lambert Smith Hampton has clients across banking, finance, transport, telecoms and retails sectors, plus over half of London borough councils. It recently handled the sale of 800 former railways sites.
Its accounts for last year showed an operating profit of £5m on sales of £64.1m.
Countrywide’s chief executive Grenville Turner said: “The acquisition of LSH is an important part of Countrywide’s continued growth strategy. It will enhance our footprint across the UK and will help to drive more opportunities to our teams operating our core Land and New Homes, and Residential Development & Investment businesses.”
LSH chief executive Ezra Nahome said: “This heralds a new, exciting chapter for LSH, and being part of the Countrywide group will provide us both with significant opportunities.”
Countrywide has so far focused on the residential market.
Lambert Smith Hampton was founded in 1773 and is one of the largest commercial property firms in the UK, with 26 offices and 861 staff.
The deal has to be approved by the Financial Conduct Authority.
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