FF&P Private Equity will invest £8m to take a majority stake. The management team, which is reinvesting in the business a part of this transaction, said it sees a number of key growth opportunities for the business, including the expansion of its reach into the private landlord sector, as well as developing its presence in the social housing and student sectors.
As the share of the UK housing market taken by rented property continues to increase, the company said it expects its revenue growth rate to continue to accelerate. Sales in the current year are forecast to exceed £20m, up 30 per cent on the prior year.
David Phillips supplies furniture to the UK professional residential property market. It recently furnished more than 130 luxury apartments for London & Stamford and Knight Frank as part of the redevelopment of Arsenal FC’s former Highbury Stadium. It launched a furniture rental business in 2010 which has seen more than 100 per cent growth in profits in the last 12 months.
Henry Sallitt, co-head of FF&P Private Equity, said, “We are delighted to back Nick and his team to continue the impressive growth they have achieved since 2005. The David Phillips business has a huge range of opportunities. The current constraints on the availability of mortgage finance are ensuring that the trend towards rental from owner-occupied is continuing. This presents significant growth opportunities in David Phillips’ core market of servicing private rental properties. However there are other areas that to date the company has only scratched the surface of, including social housing.
“In a highly fragmented market, where it’s the largest player, there are also attractive opportunities to act as a sector consolidator. We look forward to working with the team to realise these opportunities.”
Copyright © 2012 AltAssets