Newton Property, the factoring specialist founded by Stephen O’Neill, has pulled off a second acquisition in two months with a £650,000 cash deal.
The Glasgow-based group, which has 11,000 factored properties and 600 letting stock, has acquired Greenhome Property Management, also based in the city, created founded six years ago by the Greenbelt group.
The deal follows Newton’s recent all-share deal to merge with Watt & Co in Aberdeen, and will see its managed properties rise to 15,000 putting it in the top five in Scotland.
Mr O’Neill said: “We have paid for it from reserves and used our savings, we are still lucky to be in a position where we don’t have any borrowings. It just so happened that the two companies came along at the same time.”
The Watt & Co deal was funded through an all-share transaction with Aberdeen founder Ross Watt, 31, a former oil industry project manager who set up his business in 2008. The Glasgow deal will see Newton acquire the Greenhome corporate entity, and a business which has not been hugely profitable but which has amassed real value, Mr O’Neill said.
Mr O’Neill said: “We are also delighted that all members of the Greenhome management staff will join the Newton team and will assist with a seamless transition for Greenhome’s clients.”
He added: “We have got to make more per unit out of it but with scale we can do that.”
Alex Middleton, chief executive of Greenbelt Holdings , said: “Greenhome is all about customers and management. The acquisition by Newton provides an excellent fit and I am sure both the customers and the new merged management team will benefit from greater opportunity.”
On the state of the market, Mr O’Neill said: “We are now seeing housebuilders coming to us with instructions again. Generic growth was stifled by the lack of new housebuilding, and now confidence is permeating through the market. We are not bullish yet – nor are the housebuilders, but they are out there.”
He added: “We have had eight torrid years in the residential housing market. We went into the difficult times with a good book of business and we now have a significantly better book.
“The next stage in Newton’s development is to consolidate our growth, tuck in our new expanded portfolio and colleagues and to look forward to further growth in 2016 and beyond.”
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