Warwick Estates to roll out acquisition strategy with £2m investment from London bank OakNorth

OakNorth, the London-based bank, has provided £2m of debt finance to Warwick Estates, one of the UK’s largest property management companies.

The finance provided by OakNorth will be used to implement a ‘buy & build’ strategy to consolidate a highly fragmented market.

Warwick’s aim is to acquire numerous property management portfolios each year, with a particular focus on small to medium sized competitors which manage up to 10,000 units.

The company has already identified several target businesses, and is seeking to fully deploy OakNorth’s financing during 2018.

Headquartered in Harlow, Essex, Warwick has additional offices in London, Cardiff, Grays, Warrington, Cheltenham and Portsmouth, and employs 115 people across the UK.

The company engages in property management activities to leaseholders in communal buildings, acting as a managing agent appointed by the buildings’ management company.

Last year Warwick, which manages over 850 sites, also gained investment from Sir Rod Aldridge, the founder of Capita.

Commenting on the deal CEO, Dr Craig Stevens, said: “We are delighted to have partnered with OakNorth. Throughout the process we have been impressed by their approach and engagement with the business.

’With such an excellent partner on board, we are excited to continue looking for new acquisitions and expanding the Warwick brand, bringing our outstanding service to thousands more customers across the UK.“

Trevor Morris, debt finance director at OakNorth, added: “Members of The Association of Residential Managing Agents (ARMA) - the main trade association for property managers – manage around half of the leasehold properties in England and Wales, evidencing the scale of the market which Warwick operate in.

“However, it is a highly fragmented industry which is why there is a significant opportunity for Warwick to consolidate, bringing core management and data systems under one roof, and generating economies of scale.

“With Sir Rod Aldridge’s backing, the business is implementing a buy and build strategy which should see it become one of the largest property managers in the UK within a matter of years.”