Newton Lettings makes first expansion move with acquisition of Glasgow’s Kite Letting
Property management company Newton Lettings has taken the first step in its expansion plan with the purchase of Glasgow-based Kite Lettings.
Three-year-old Kite Lettings has a portfolio of 45 properties owned by over 13 clients, all based in Glasgow’s city centre and West End.
Newton Lettings has also revealed that no staff will transfer over from Kite Lettings.
Managing director Riccardo Giovanacci acquired Newton Lettings, the lettings arm of his family’s long-established business Newton Property Management, which continues to trade successfully, in April this year.
He said: “This acquisition is right for our business and comes at the right time. When the opportunity came up to purchase Kite with cash reserves, I felt it was the smart move to reinvest some of our profits in continuing to grow our portfolio. Our business is already strong in Glasgow, so the properties that are moving over to us will give us increased geographical presence.
“Following this transaction my priority is to reassure our new landlord clients that we will ensure they will continue to receive the high-quality service they have enjoyed in the past.”
On the Glasgow letting market generally, Mr Giovanacci said that his business this year has seen a surge in enquiries for tenants which, in turn, has helped to boost prices.
He added: “We have had an excellent start to the year, with business growing organically by around 10 per cent. We are looking to increase that year on year and with the Kite lettings business added, our portfolio will increase to almost 600 units let and managed on behalf of around 370 landlords.
“We have invested in extra staff since the buyout and this has allowed us to provide a better service to our clients, and in turn, has seen more landlords and tenants recommending our services. In addition, the buyout, has given me greater motivation to go out and win more business. Landlords know the buck stops at me and like dealing with some completely invested and hands-on.
“In 2020 and beyond, we want to continue improving on what we do and to continue to re-invest in growing the portfolio so that we can achieve our ambition to become one of Glasgow’s, and Scotland’s, larger letting agents.”
Newton Lettings’ legal advisers to the transaction were Paul Geoghegan and Tamara Young at Morton Fraser, both of whom assisted in the buyout of Newton Lettings.