London Estate Agent Dexters Explores £500m-£600m Sale Amid Mansion Tax Concerns
Dexters, a prominent London estate agent, is exploring a potential sale with Barclays lined up to advise, with a valuation expected between £500 million and £600 million. Oakley Capital, which has held a majority stake of roughly 60% since 2021, invested about £130 million in that year to fuel the company's expansion. Dexters' business growth has been supported by acquisitions, including Marsh & Parsons and LiFE Residential.
The company's last filed accounts for the year ending 30 September 2024 show an underlying operating profit of above £47 million and revenue around £222 million, with lettings contributing about two-thirds of its revenue. Dexters operates roughly 40 offices in Central London and has several more across the capital, maintaining a strong focus on the London market.
The potential sale discussions are at a very early stage with no formal mandate or timing decided. If sold for more than £500 million, the deal would value Dexters significantly above rivals such as Foxtons, which has a market capitalization of about £175 million. This activity aligns with comparable moves in the sector, such as LRG hiring Rothschild to explore an £800 million sale of a major agency group.
The timing of this sale consideration comes as Labour's plan for a mansion tax on homes valued above £2 million is anticipated, set to be introduced as a recurring levy from 2028, creating some uncertainty in the sector. Meanwhile, the UK housing market shows signs of slowing down, although London experienced a small quarterly price rise during this period.
Dexters is led by CEO Andy Shepherd and chaired by Justin King. The business was founded by Jeff Doble in 1993 and continues to be a major player in the London property market.
