Canadian investment company Aimia Inc. has increased its stake in estate agency group Foxtons to 7.1% of voting rights, according to a regulatory filing.
Aimia now holds 21,014,187 Foxtons shares, up from the previously disclosed 6.9%. The company crossed the 7% threshold on 29 September and notified Foxtons the same day. The filing describes the change as an “increase in ownership position” but offers no explanation for the decision.
London quotation plans
The move comes as Aimia pursues plans to establish a London quotation. Already listed on the Toronto and Johannesburg stock exchanges, Aimia announced in August its intention to seek admission to London’s AIM market.
Executive chairman Rhys Summerton said a London quotation could help the investment company attract new investors and make further investments in target companies. He said: “Consistent with our strategy and focus of enhancing shareholder value, we have explored becoming AIM quoted and believe that it will enhance our liquidity, attract new investors, and facilitate making investments in target companies. We look forward to becoming AIM quoted.”
Aimia has not identified Foxtons as a target for further investment, nor is there any indication it intends to make an offer for the estate agency group. However, its increased holding is likely to attract further attention as it develops its UK investment strategy.
Foxtons acquisition drive
The increased stake coincides with Foxtons’ own acquisition strategy. The group recently completed four lettings-focused acquisitions, with Birmingham a key target for growth.
Foxtons acquired Maguire Jackson and Davidson Estates in Birmingham, Warren Anthony in Watford, and a lettings portfolio in the Reading area. The initial cost is £4.8m, with deferred and contingent consideration of up to £1.2m potentially bringing the total to £6m, subject to performance. The acquired businesses generated unaudited revenue of £3.2m in their most recent financial years.
The Birmingham deals significantly expand Foxtons’ presence in the city, which it entered earlier this year through the acquisition of FleetMilne. Maguire Jackson adds a city-centre lettings operation, while Davidson Estates extends the group’s reach into Edgbaston. Foxtons plans to bring its Birmingham businesses together under the Foxtons brand later this year.
Chief executive Guy Gittins said: “We entered the strategically important Birmingham market earlier this year, establishing a foothold in the UK’s second largest city and creating a hub from which to grow across the wider region. The acquisitions of Maguire Jackson and Davidson Estates demonstrate the progress we are making to build scale in Birmingham.”
Further acquisitions on the agenda
Foxtons is also building on previous acquisitions in Watford and Reading. Warren Anthony will become part of its Watford operation, formerly Imagine Property Group, while the Reading portfolio will join the business previously acquired from Haslams.
Foxtons expects the four latest acquisitions to contribute to earnings from 2027. The group is targeting a 20% return on invested capital once planned synergies are delivered. It retains funding capacity for further acquisitions and continues to target lettings businesses that complement its existing operations.
Gittins added: “We continue to see a strong level of acquisition opportunities and remain focused on high-quality, lettings-focused businesses that strengthen our existing operations, grow recurring Lettings revenues and deliver attractive returns for shareholders.”
