Glasgow business Newton Lettings has made its first takeover with the purchase of local firm Kite Lettings.
The deal transfers a portfolio of 45 properties in Glasgow’s city centre and west end, owned by more than 13 clients, but no staff.
Newton managing director Riccardo Giovanacci bought the lettings business in April from his uncle Stephen O’Neill’s Newton Property Management, which continues to trade.
Giovanacci said: “This acquisition is right for our business and comes at the right time. When the opportunity came up to purchase Kite with cash reserves, I felt it was the smart move to reinvest some of our profits in continuing to grow our portfolio. Our business is already strong in Glasgow, so the properties that are moving over to us will give us increased geographical presence.
“Following this transaction my priority is to reassure our new landlord clients that we will ensure they will continue to receive the high-quality service they have enjoyed in the past.”
Giovanacci said rents have been boosted this year by a surge in tenants seeking homes.
He added: “We have had an excellent start to the year, with business growing organically by around 10%. We are looking to increase that year on year and with the Kite lettings business added, our portfolio will increase to almost 600 units let and managed on behalf of around 370 landlords.
“We have invested in extra staff since the buyout and this has allowed us to provide a better service to our clients, and in turn, has seen more landlords and tenants recommending our services.
“In 2020 and beyond, we want to continue improving on what we do and to continue to re-invest in growing the portfolio so that we can achieve our ambition to become one of Glasgow’s, and Scotland’s, larger letting agents.”
Newton Lettings was advised in the transaction by Paul Geoghegan and Tamara Young at Morton Fraser, both of whom assisted in the original buyout in April.