A Scottish property management firm has sold off its North-east leasing division in a five-figure deal as it sets to focus on growth in factoring.
Newton Property Management has finalised an agreement with central belt firm, Even Property, in a £70,000 acquisition of its residential leasing book which will see around 100 properties being moved across.
Newton, which has offices in Aberdeen, Inverness and Glasgow, manages factoring for 23,000 properties across Scotland, which accounts for 78% of the firm’s turnover, with leasing only a fraction of the business.
With around 60 staff, including seven in Aberdeen, the firm is now set to focus entirely on growing the factoring book. Newton has also sold its letting book in the central belt to another buyer.
Newton Aberdeen director, Ross Watt, said: “We had a number of potential buyers for the North leasing division but we were specifically looking for the best option for our landlords and our tenants and Even Property clearly had a very similar business ethos and delivery of service to Newton, therefore it was the perfect fit.
“We still manage commercial lettings in the Highlands but our main motivation is factoring, so the deal will allow us to utilise our resources as we begin to look into acquisitions in the factoring market to continue growing the business across the whole of Scotland.”
Even Property, which launched in Glasgow two years ago managing around 200 lets, has set up a new office in Aberdeen’s Queen’s Road following the acquisition.
Managing director, Steven Strachan, who is originally from Aberdeenshire, founded the business following a career in joinery and property development and has a team of six.
He added: “Securing Newton’s north letting business has given us a strong starting position in Aberdeen as we look to grow here and in Glasgow in the coming months, with further acquisitions in the pipeline for both cities.
“With my trade background, Even Property has a diverse knowledge which ensures we can fully support our tenants and landlords and the entire team is qualified, registered letting agents. This allows us to continue offering the same service to Newton clients ensuring a smooth transition across.”
Ross Watt will support Even Property on a consultancy basis for the next six months as the clients and business is transferred. The move has not affected any Newton staff, who will continue to work in the business under the factoring division.