Estate agency Hunters Property is looking to cash-in on the UK’s supply and demand imbalance in the housing market by floating on AIM next month (July 2).
The 151 branch sales and lettings franchiser is expected to be worth between £15 million and £20 million on admission. No money is being raised with management looking to open a route to capital when needed to fund its ambitious growth targets.
Hunters wants to be the UK’s largest estate agency by branches within three years, an ambitious target. Countrywide is believed to be the current UK number one with its 1,400-odd outlets. Hunters hopes to change that by attracting around 20 new franchisees each year. It will also make acquisitions to speed up growth.
Demand for housing is increasing as population number rise faster than new supply hits the market. Hunter’s main income is the 8% annual management fee it collects from its franchisees revenues. This is lower than the 9% MartinCo (MCO:AIM) charges and the 12% franchisees pay Belvoir (BLV:AIM).
Numis are advising management.