Two firms specialising in new build mortgages have been sold out of LSL Property Services group to a joint venture it operates with private equity investor Pollen Street Capital.
Group First Limited and RSC New Homes Limited have been acquired from the Newcastle-based plc by Pivotal Growth, a business set up to become a national leading mortgage broker. The deal is worth seven times the combined Group First and RSC Ebitda in 2024 and capped at a maximum of £20m.
LSL says the move is in line with its strategy to simplify its group and focus on growing its financial services business. The owner of the Reed Rains and Your Move estate agency businesses has built up its financial services division, which reported record revenues in the first half of 2022 and now accounts for 10.2% of the total purchase and re-mortgage market.
