Words: Ashley Rigg
Published: 19th October 2009
Bank sells estate agency for a pound
Lloyds Banking Group has reached an agreement in principle to sell Halifax Estate Agencies, the fourth largest estate agency chain in the UK, to LSL Property, the industry’s third biggest agency for the nominal sum of £1. In addition to paying the pocket-money price, LSL is to receive assets including £8m worth of freehold property plus £22.2m in cash to cover other costs, such as rebranding and redundancy payments.
LSL, the parent company of Your Move and Reeds Rains will rebrand the offices and close the 121 Halifax banking counters located within them in the new year with an estimated 360 job losses. Although 1,050 estate agency jobs will transfer across to the new company, only 880 will be kept with 132 positions lost as a result of branch integration.
LSL chairman, Roger Mathews comments: “The rebranding of 218 branches to Your Move, Reeds Rains and InterCounty brands will strengthen LSL's estate agency position in local markets, increasing our leverage with suppliers, brand concentration and market share in existing locations”.
The nominal sum paid by LSL Property together with the multi-million pound sweetener will no doubt raise questions about whether Lloyds Banking Group (part owned by the British government) has obtained the best deal for taxpayers.
LSL will become the second-largest estate agency network in the UK behind Countryside.
Full story on
Estate Agent Today.
Related Links