OakNorth lends £2m debt finance to Warwick Estates

Specialist bank OakNorth has provided £2m of debt finance to Warwick Estates.

The property management company will use the funding to implement a ‘buy-and-build’ strategy to consolidate a highly fragmented market.

Warwick Estates aims to acquire a number of property management portfolios each year, with a particular focus on small- to medium-sized competitors which manage up to 10,000 units.

The company – which is based in Harlow, Essex – employs 115 people across the UK with additional offices in London, Cardiff, Grays, Warrington, Cheltenham and Portsmouth.

Warwick Estates offers property management activities to leaseholders in communal buildings and acts as a managing agent appointed by the buildings’ management company.

It invested significantly last year to launch the Warwick Academy, which provides staff with industry-leading training throughout their career.

Dr Craig Stevens, CEO at Warwick Estates, 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 operates 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 [the founder of Capita] 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.”

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