Foxtons has made its first move outside the London commuter belt with the acquisition of Birmingham-based lettings agent FleetMilne.
The listed estate agency group said the deal supports its strategy to grow non-cyclical, recurring lettings income while establishing a foothold in a major regional market with long-term growth potential.
Lettings account for around 95% of FleetMilne’s revenue, making it a close fit with Foxtons’ focus on more stable earnings streams.
FleetMilne is a well-established independent business with a strong market share in central Birmingham, an area that has seen significant regeneration in recent years.
BUILDING BOOM
Foxtons highlighted the scale of new homes and build-to-rent development planned for the city, alongside improving connectivity with London, which is expected to accelerate further following the opening of HS2.
The acquisition is expected to create opportunities for organic growth through revenue and cost synergies, supported by the Foxtons Operating Platform.
FleetMilne will act as the group’s Birmingham hub.
FleetMilne will also act as the group’s Birmingham hub, enabling further bolt-on acquisitions in the region.
Foxtons has agreed to pay an initial consideration of £3.2m, with a further £0.8m deferred for 12 months and subject to performance targets and the deal will be funded through the group’s existing revolving credit facility.
For the 12 months to 30 September 2025, FleetMilne reported unaudited revenue of £1.5m and profit before tax of £0.2m. The acquisition is expected to be earnings accretive from 2026, with Foxtons targeting a medium-term return on investment of 20% in Birmingham.
NATURAL NEXT STEP
Guy Gittins, Chief Executive of Foxtons, says: “This is a significant move for Foxtons as we expand outside of the London commuter belt for the first time.
“Our successful acquisitions in London’s commuter towns have shown how our industry-leading platform can unlock value, making Birmingham – a major market with strong long-term potential, supported by extensive redevelopment and increasing connectivity with London – a natural next step.
“With the Foxtons Operating Platform behind it, FleetMilne provides a strong foundation for organic growth and enables further bolt-on acquisitions as we build scale and deliver attractive returns.
“FleetMilne has built an excellent reputation and is a natural fit for Foxtons as we continue to acquire high-performing lettings businesses. I look forward to welcoming the FleetMilne team into Foxtons.”
BIG OPPORTUNITY
Nicola Fleet-Milne, managing director of FleetMilne, adds: “Having built FleetMilne over the past 20 years into a leading lettings business in central Birmingham, it was important to find a partner who shared our ambition for the market and our commitment to outstanding service.
“Foxtons is the right partner for the next stage of our journey, and I am genuinely excited about what we can achieve together.
“Foxtons’ scale, technology and expertise will give us the tools to accelerate our growth in Birmingham and enhance the service we provide to landlords and tenants.
“I am looking forward to leading the business through this next chapter and unlocking the significant opportunities ahead.”
Main picture: Sealing the deal: Guy Gittens (left) and Nicola Fleet-Milne pictured yesterday on the steps of Fleet-Milne.
