AIM-listed wealth management group Brooks Macdonald has announced the sale of Hale-based property management business Braemar Estates to Rendall & Rittner.
The buyer will pay a total cash consideration of £1.9m on a cash-free, debt-free basis, to be paid in three tranches, with 50% up front. Contracts were exchanged yesterday and the deal is expected to be completed by the end of this year.
Established in 1990, Rendall & Rittner is a specialist in property management that has grown to employ 250 internal and 850 on-site staff. Outside of its home London territory, it manages properties in the North West, South and Midlands. The business has not yet revealed any plans for Braemar.
The disposal follows a recent review of Braemar Estates, which led Brooks Macdonald’s board to decide to sell the business, enabling it to focus more closely on core offerings, contributing over time to improved margins.
In addition to Hale, Braemar has sales and lettings offices in Manchester and Liverpool, along with Birmingham and London. The business was co-founded by Marc Duschenes, who sold to Brooks Macdonald in 2010, before buying parts of the business back and exiting a year later.
In Brooks Macdonald’s financial year to 30 June 2017, Braemar represented 3.2% of group revenue with £2.9m and 0.7% of its underlying profit with £126,000. Braemar has net liabilities of £500,000.
Caroline Connellan, chief executive of Brooks Macdonald, said: “The disposal of our property management business will enable us to focus more closely on our core offerings and is expected to contribute over time to improved margins.”