Dexters’ private equity owner Oakley Capital is preparing to test buyer appetite for London’s largest estate agency chain with a potential price tag of £500m–£600m.
The move comes despite uncertainty created by the Chancellor’s proposed levy on £2m-plus properties from 2028.
According to Sky News, Oakley, which bought a majority stake in 2021, is understood to be lining up Barclays to advise on options. Any process is said to be at an early stage, with timing and structure still to be decided.
Dexters has expanded rapidly across the capital and now operates scores of branches, including around 40 in prime central London.
BUY-AND-BUILD
Pic credit: Dexters
Founded in 1993 by Jeff Doble, the business is led by chief executive Andy Shepherd and chaired by former J Sainsbury boss Justin King.
For the year to 30 September 2024, Dexters reported underlying operating profit of more than £47m, up from just over £40m the previous year, on revenues approaching £222m.
Lettings generated close to two-thirds of turnover, helped by acquisitions and market share gains.
Since Oakley’s investment – reported at £130m – Dexters has pursued a buy-and-build strategy, snapping up rivals including Marsh & Parsons and LiFE Residential. Industry sources estimate Oakley now owns about 60% of the group.
STRUGGLING MARKET
A sale at mooted levels would value Dexters well above listed rival Foxtons, whose market capitalisation is about £175m after a difficult year for its shares.
Estate agency groups have struggled on public markets more broadly, with Countrywide taken over by Connells in 2021 after a series of profit warnings.
Any transaction would take place against a backdrop of a sluggish housing market.
UK house prices edged up just 0.6% last year, with London up 0.7% in the final quarter.
