The private equity backers of London’s biggest estate agency chain are exploring a potential sale valuing it at more than £500m, despite the looming threat of Rachel Reeves’ new “mansion tax”.
Sky News has learnt that Oakley Capital, which acquired a majority stake in Dexters in 2021, is close to hiring investment bankers to evaluate options for monetising its investment in the group.
Dexters, which has scores of offices across the capital, including roughly 40 in Central London, was founded in 1993 by Jeff Doble.
The company is now run by chief executive Andy Shepherd and chaired by Justin King, the former J Sainsbury boss who now chairs Allwyn, the National Lottery operator.
In the year to 30 September 2024 – the last period for which accounts have been filed at Companies House – Dexters London reported underlying operating profit of more than £47m, up from just over £40m in the previous year.
It recorded revenue during the more recent period of nearly £222m, fuelled by acquisitions and a growing market share. Lettings accounted for close to two-thirds of the company’s total revenue.
This weekend, banking sources said that Barclays was being lined up to advise on a potential sale of Dexters, although it was unclear whether it had been formally mandated yet.
The sources added that the process was at a very preliminary stage, with no decisions taken about the timing or structure of any process.
They suggested, however, that a valuation of between £500m and £600m was realistic.
News of the potential sale comes just six weeks after Chancellor Ms Reeves confirmed plans for a tax on homes worth more than £2m, with a recurring levy to be imposed from 2028.
Oakley Capital has backed prominent British businesses including the hospitality and media group Time Out and Thomas’s London Day Schools, where a number of members of the royal family have been educated.
It recently announced the purchase of a stake in Athena Racing, the British America’s…
