Emeria, a French real estate and technology group, has acquired Chestertons, one of the UK’s oldest estate agents, for a reported £100 million. The acquisition is the latest sign of consolidation in the British property sector, as companies look to expand their offerings and gain a competitive edge.
Chestertons, which specializes in London prime property, has been in operation since 1805 and has a reputation for providing high-quality service to its clients.
The acquisition by Emeria, which already owns one of the UK’s largest property management firms, FirstPort, as well as companies in many other European countries, is expected to enhance Chestertons’ capabilities and enable it to better serve its customers.
The deal also marks Emeria’s entry into the UK estate agency market, as it seeks to expand its real estate services and technology offerings across Europe.
The acquisition comes at a time when the property market in the UK is experiencing significant change, with the rise of online estate agents and increased competition from traditional rivals. The move by Emeria is seen as a strategic one, as it seeks to capitalize on the growing demand for high-quality real estate services and technology solutions. The acquisition is expected to bring about new opportunities for both Chestertons and Emeria, as they look to grow their businesses and expand their reach in the UK and beyond.
The Acquisition Deal
Deal Overview
Chestertons, one of London’s oldest estate agents, has been acquired by French property group Emeria for a reported £100m. The deal was announced on October 23, 2023, and is expected to be completed in the coming weeks, subject to regulatory approval.
Salah Mussa, the CEO of Emeria’s UK arm, Campions Group, said the acquisition was part of the company’s strategy to expand its presence in the UK property market. Chestertons will operate as a standalone business within Emeria, with its existing management team remaining in place.
The deal was advised by Deloitte, and the investment vehicle used by Emeria to acquire Chestertons is believed to be Mercantile Group.
Key Players
Emeria
Emeria is a French property group that owns one of the UK’s largest property management firms, FirstPort, as well as companies in many other European countries. Through its UK arm, Campions Group, Emeria has been investing in UK real estate since 2015.
Chestertons
Chestertons was founded in 1805 and has been operating in London’s property market for over 200 years. The estate agent has 31 offices across the capital, as well as international offices in Europe, Asia, and the Americas. The company offers a range of services, including sales, lettings, property management, and valuations.
Deloitte
Deloitte is a global professional services firm that provides audit, tax, consulting, and financial advisory services. The firm advised Emeria on the acquisition of Chestertons.
Mercantile Group
Mercantile Group is an investment vehicle used by Emeria to acquire Chestertons. The group’s focus is on real estate investments, with a particular emphasis on the UK market.
In summary, Emeria’s acquisition of Chestertons for £100m is part of the company’s strategy to expand its presence in the UK property market. Chestertons will continue to operate as a standalone business, with its existing management team remaining in place. The deal was advised by Deloitte, and the investment vehicle used by Emeria to acquire Chestertons is believed to be Mercantile Group.
Impact on Chestertons
Brand and Technology
The acquisition of Chestertons by Emeria is expected to have a significant impact on the brand and technology of the estate agent.
While Chestertons is one of the UK’s oldest estate agencies, it has struggled in recent years due to intense competition and a prolonged stagnation in the property market.
The acquisition by Emeria, a French real estate and technology group, is expected to bring fresh investment and expertise to Chestertons, which could help revitalize the brand and improve its technology offerings.
Offices and Operations
As part of the acquisition, it is expected that Chestertons will continue to operate its existing offices and branches in the UK and globally.
However, there may be some changes to the company’s non-UK operations, as Emeria may look to consolidate some of its existing property management firms with Chestertons’ operations. It is unclear at this stage whether there will be any job losses or restructuring as a result of the acquisition.
Overall, the acquisition of Chestertons by Emeria is expected to have a positive impact on the estate agent, bringing fresh investment and expertise to the company. While there may be some changes to the company’s non-UK operations, it is expected that Chestertons will continue to operate its existing offices and branches in the UK and globally.
Image Credit Brandpoint
