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Stirling Ackroyd, which focuses on central London and the City fringe and manages a lettings book with more than 1,400 properties across its six branches, is the third buy for Nick Dunning Associates, following its acquisition of Adams Property in June and Badger Holdings Group in January. [...]you can make £5m one year and lose £2m the next." Since starting in 2016, the private equity-backed agency has built a portfolio of 34 branches and intends to build a company of around 100 before looking for a new investor.
Nick Dunning Associates this week bought agency Stirling Ackroyd as it continues its attempt to build a new large-scale estate agency.
Stirling Ackroyd, which focuses on central London and the City fringe and manages a lettings book with more than 1,400 properties across its six branches, is the third buy for Nick Dunning Associates, following its acquisition of Adams Property in June and Badger Holdings Group in January.
"The lettings business creates a steady profit stream," said chief executive Nick Dunning. "The sales business is incredibly cyclical and subject to market conditions and changes. As a result, you can make £5m one year and lose £2m the next."
Since starting in 2016, the private equity-backed agency has built a portfolio of 34 branches and intends to build a company of around 100 before looking for a new investor.
Dunning said that for the moment the expansion is concentrated within the M25, which offers the right opportunities at the right prices.
"Strategically we are prepared to go anywhere but now most of the opportunities are right here in London," said Dunning.
"In reality you buy businesses only when they are put up for the sale. At the minute there are lots of people who effectively want to sell their business, because London is such a big lettings market and sales market."
LISTEN TO DUNNING DISCUSS THE COMPANY'S AMBITIONS AT WWW.EGI.CO.UK/NEWS/886239.NW
Copyright Reed Business Information UK Jul 29, 2017