Letting agency Lomond has acquired the entire rental portfolio of Purplebricks in Scotland.
The deal, finalised for an undisclosed sum, will see all the properties transfer from the online agency to Lomond’s two principal Scottish brands; DJ Alexander - based in Edinburgh, Glasgow, and St Andrews - and Stonehouse - which operates across Aberdeen.
Two thirds of the former Purplebricks’ Scottish lettings book are located in Glasgow, Edinburgh, and Aberdeen, with the remainder situated in Falkirk, Inverness, Kilmarnock, Kirkcaldy, Motherwell, and Paisley.
Lomond’s chief executive Ed Phillips, said: “This latest acquisition is the ideal strategic and geographical fit for Lomond – the properties we inherit are in ideal locations, throughout all our key Scottish heartlands.
“It also further strengthens our market-leading position as the biggest residential property specialist in Scotland, with an expanding lettings portfolio of 11,000 homes now under our management through our DJ Alexander and Stonehouse brands.”
David Alexander, chief executive of DJ Alexander, said: “We believe there are excellent opportunities across all areas across the UK, and we will continue to grow in the coming years as landlords, property investors, and tenants welcome the growing range of services that Lomond offers, and the quality of delivery we provide.”
Lomond has now completed 41 acquisitions on its growth journey. Seven of these have been in Scotland, spearheaded by the deal that added DJ Alexander to the group 16 months ago.
More than 40,000 properties throughout the UK in private rental hotspots are now under Lomond’s management, and it employs a team of more than 1,100.
Last week, Purplebricks agreed a deal to sell its business and assets for a nominal £1 to a rival backed by Carphone Warehouse and TalkTalk founder Sir Charles Dunstone.
The deal with online competitor Strike will effectively wipe out shareholders, sending the stock down more than another 40%.
Strike will also take on Purplebricks' liabilities under the terms of the deal, but warned over jobs losses among the more than 750 employees.
While staff will transfer to Strike, it plans to launch a redundancy programme, which is expected to impact field agents and central support teams.
Purplebricks' chief executive Helena Marston is set to resign after the sale completes, while the rest of the board also plan to step down.
The firm has suffered a difficult 18 months, with an overhaul of its operating model, multiple management reshuffles and shareholder calls for the removal of its chairman.
The group put itself up for sale in February after disclosing its turnaround plans have been costlier than expected and it is set to sink deeper into a loss.
Founded in 2012, Purplebricks had a lot of success in its early years, disrupting an old industry.
Don't miss the latest headlines with our twice-daily newsletter - sign up here for free.
