Foxtons looks for buyer for mortgage broker Alexander Hall

Foxtons looks for buyer for mortgage broker Alexander Hall


Several mortgage advice firms have been approached by third parties acting for Foxtons with marketing packs targeting the acquisition of the Alexander Hall in the last two months.

Mortgage Solutions understands that Clearwater, an adviser brokering the deal for Foxtons, has drawn up a prospectus to show to eligible mortgage advice businesses.

Clearwater is a corporate finance house that specialises in mergers and acquisitions, debt raising and refinancing.

One source, who has been approached with a prospectus but has declined the proposition because they are not planning to expand, said to be an attractive deal the transaction would have to come with a mandate relating to the ongoing relationship between the two businesses.

“Any acquirer of the business would be looking for reassurance that Alexander Hall’s relationship with Foxtons to serve its estate agency branches would continue,” said the source. “Perhaps in the region of a 10-year service agreement.”

One broker firm thought to be an interested party is Pivotal Growth, a new intermediary established as part of a £200m joint venture between LSL and investors Pollen Street Capital.

Simon Embley stepped down as chairman of LSL Property Services to join Pivotal as chief executive in April.

Through funding from LSL and Pollen Street Capital, Pivotal is armed with a war chest of close to £100m to support acquisitions.

Following the publication of Mortgage Solutions’ story, Foxtons confirmed in a statement to the stock exchange that it was reviewing strategic options for Alexander Hall which could include the sale of the business.

Clearwater declined to comment.

LSL said it would not comment on market speculation.