UK Property Giants TPFG and Belvoir Announce All-Share Merger
UK’s real estate industry is poised for a significant shakeup as two of its major players, The Property Franchise Group (TPFG) and Belvoir Group (Belvoir), have announced an all-share merger. The merger, set to be completed through a court-sanctioned scheme of arrangement, will result in a leading property franchise business in the nation. With a projected market capitalization of approximately £214.4 million, the combined entity will operate over 930 franchise locations and manage around 152,000 tenanted properties. It is also anticipated to sell more than 28,000 properties annually.
A Promising Union
The merger will see Belvoir shareholders owning 48.25% and TPFG shareholders 51.75% of the enlarged issued share capital of TPFG. For the fiscal year 2022, the combined revenue of both companies exceeded £60 million. The merger values each Belvoir share at approximately 277.4 pence, indicating an equity value of Belvoir’s entire issued ordinary share capital as at the latest practicable date of roughly £103.5 million. TPFG’s entire issued ordinary share capital is valued at approximately £111.0 million as at the latest practicable date.
The Combined Strength
The fusion of these two powerhouses is expected to create a robust platform for future growth. The combined group’s potential is further underscored by the addition of a financial services business, a diversified brand portfolio, and complementary geographic footprints. This merger is expected to become effective in the first quarter of 2024.
Positive Outlook from Leadership
Both Paul Latham, non-executive chairman of TPFG, and Jon Di-Stefano, non-executive chairman of Belvoir, have expressed optimism about the merger. They highlighted the combined group’s potential for growth and the greater value this merger will deliver to shareholders. This merger is seen as a compelling opportunity for all shareholders, bringing further breadth through Belvoir’s nationwide network, which will complement TPFG’s current offering. The strategic move aims to capitalize on the strengths of both companies, promising a stronger future in the UK property franchise industry.
