Buying Foxtons Estate agents was a wrong move says BC Partners

Jon Hunt, Property Entrepreneur sold Foxtons to BC Partners for £360 million just before the credit crunch, with home sales in London falling 70 percent since the sale, BC Partners have admitted that the purchase was “an error”.

BC Partners managing partner, Andrew Newington said that they expected a property slowdown of around 30 percent but never expected a 70 percent slowdown since May 2007 when the firm acquired Foxtons the London based estate agent.

Mr Newington said “We made the wrong call” he also added that Foxtons has breached its loan covenants and missed debt-to-earnings targets and interest cover.

However, BC Partners are negotiating with their lenders, Bank of America and Mizuho as to if they can invest more money into Foxtons.

The acquisition of the real estate firm used about £260 million of loans.

Source: Guardian

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