London's Dexters Estate Agents Up for Sale: A £500M Price Tag?
The private equity firm Oakley Capital, which bought a majority stake in Dexters in 2021, is reportedly exploring a potential sale that could value the company at over £500 million. This comes as a surprise, given the recent introduction of Rachel Reeves' "mansion tax" on homes worth more than £2 million.
Sky News has learned that Oakley Capital is close to hiring investment bankers to assess options for monetizing its investment in Dexters. Dexters, with its numerous offices across London, including around 40 in Central London, was founded by Jeff Doble in 1993.
The company is now led by CEO Andy Shepherd and chaired by Justin King, the former boss of J Sainsbury and current chair of Allwyn, the National Lottery operator. In the fiscal year ending September 30, 2024, Dexters London reported an underlying operating profit of over £47 million, up from just over £40 million the previous year.
Revenue for the same period was nearly £222 million, driven by acquisitions and market share growth. Lettings contributed to nearly two-thirds of the company's total revenue.
Barclays is reportedly being lined up to advise on the potential sale, though it's unclear if they've been formally engaged yet. The process is still in its early stages, with no decisions made about timing or structure.
Industry sources suggest a valuation between £500 million and £600 million is realistic. This potential sale comes just six weeks after Chancellor Rachel Reeves announced plans for a tax on homes worth over £2 million, with a recurring levy from 2028.
Oakley Capital has supported various British businesses, including hospitality and media group Time Out and Thomas's London Day Schools, where several royal family members have been educated. They recently acquired a stake in Athena Racing, the British America's Cup team led by Sir Ben Ainslie.
Oakley Capital reportedly invested £130 million in Dexters in 2021, enabling the company to expand and make acquisitions. Since then, they've acquired rivals like Marsh & Parsons and LiFE Residential.
Industry sources indicate Oakley owns approximately 60% of Dexters. A sale at this valuation would make Dexters significantly more valuable than Foxtons, which is listed on the London Stock Exchange and has seen its shares fall by over 15% in the last year, leaving it with a market cap of around £175 million.
Despite the potential sale, the UK housing market is experiencing a slowdown, with house prices rising by just 0.6% across the country last year. London saw a 0.7% increase in the final quarter, according to Nationwide, who described the market as 'resilient' overall.
