Aberdeen property firm Stonehouse yesterday assumed control of hundreds of Fife homes after announcing the takeover of Pagan Osborne’s lettings book for an undisclosed sum.
The specialist said the deal which includes around 300 properties in the St Andrews area made it the largest such firm operating in the north east of Scotland, with the 2,000 houses on its books worth an estimated total of around £445 million.
Stonehouse, part of the Lomand Capital Group, has made a string of recent acquisitions.
The latest came as Pagan Osborne concluded a strategic review of its operations, and following a decision to concentrate efforts on its core legal and property sales markets.
Six Pagan staff will transfer to the new owner, which expects to open a new base in St Andrews in the coming weeks.
Around a third of the properties currently on its books are let to students or university staff.
The two parties said they would continue to work together in a “strategic alliance” as they seek to guarantee “excellent” service to landlords and tenants.
Finance director Ross Murray said the “exciting acquisition” was a sign of things to come as Stonehouse seeks to reach into new markets.
“An acquisition in St Andrews isn’t a typical one for us, but this is a signal of our intent by moving our sphere of influence into other cities in Scotland,” he said.
“St Andrews is an excellent location and has a thriving property market.
“We will be continuing the great work that the letting team at Pagan Osborne has delivered to date. We will be able to offer our new landlords access to all the additional benefits that come with being in the Lomond Capital Group, such as mortgage and insurance products.”
The firm which employs 38 people across its offices in Aberdeen also announced it would consolidate its brands, including the newly acquired Alex Hutcheon business, under the Stonehouse name.
Edinburgh-based parent Lomond Capital was established in 2010 by investors including chief executive Stuart Pender, in an effort to consolidate the letting market and encourage institutional investment.
The group has now undertaken 20 acquisitions in the north east of Scotland, Edinburgh and Manchester under the Stonehouse, Braemore and Thornley Groves names.
Together, its three operating companies employ more than 240 people, manage in excess of 7,400 residential properties worth more than £1.5 billion, and sell homes worth more than £70 million every year.
Pagan Osborne announced a string of major changes to its senior management team in April, the first stage of a large-scale review of its business.
At the time, chief executive Alistair Morris said the 100-strong firm which has offices in Edinburgh, St Andrews, Cupar and Anstruther had taken the steps to ensure it was well positioned to meet the needs of a modern client base.
Yesterday, he said the new deal would allow the law firm to focus on its core business while benefiting existing rental agency customers.
“We are delighted to have agreed this deal with Stonehouse Lettings. It is a good move for landlords and tenants, who will benefit from its unrivalled level of resource and expertise in letting and property management,” Mr Morris said.
“We look forward to developing a strategic alliance with Stonehouse Lettings while we focus on developing our core business areas of estate agency and legal services for our clients in Fife and Edinburgh.”