Sherry Fitzgerald’s British selloff

SHERRY FitzGerald is set to dispose of its British- based interests for around €44 million.

The Newcastle-based company, LSL Property Services has agreed to buy the upmarket London-based estate agency, Marsh & Parsons for £53m ( €62m).

Sherry FitzGerald — the largest estate agent in Ireland — currently owns 72% of the London company and, therefore, stands to make around £38m (€44m) from the deal.

The remainder of Marsh & Parsons is owned by the company’s chief executive, Peter Rollings, and his fellow director, Liza-Jane Kelly.

Marsh & Parsons was bought via a management buyout led by Mr Rollings and Sherry FitzGerald chief, Mark FitzGerald, six years ago.

The Dublin-based estate agency pumped around €10m into the company — in several phases — between 2005 and 2010.

The decision to dispose of its interests in London stems from a desire to invest more in its core Irish-based business and because Marsh & Parsons is likely to require further investment in order to grow.

“Our decision to sell our shareholding in Marsh & Parsons took into consideration their growth plans, which will require significant investment.

“We feel that we are better placed to focus on our Irish business and the opportunities that will present themselves here.

“We don’t see that it is possible to invest in both,” Mr FitzGerald said yesterday.

Mr FitzGerald added that the proceeds of the sale will be used by Sherry FitzGerald to pay off company and individual debt associated with the investment.

“This is positive for the company, as it eliminates borrowings and underpins the strength of the Irish business,” he added.

On the other side of the deal, LSL chairman Roger Matthews said: “This is a unique opportunity for LSL to acquire a premium central London estate agency brand and to gain a high quality and experienced management team with a great track record.”

Mr Matthews added that Marsh & Parsons represents “an excellent geographic and strategic fit” for LSL.