The acquisition will further expand Hercules' residential property management business, following the recent acquisition of Wood Managements Group Limited, specialising in the management of blocks of flats in London.
Gross Fine boasts an extensive portfolio of management contracts in locations including Kensington & Chelsea, Westminster and Mayfair. Recent instructions include the new developments at Imperial Wharf and Royal Woolwich Arsenal, as well as Chelsea Harbour.
Following the acquisition, Gross Fine will maintain its brand name and office location. Ian Wilson, Chief Executive of Gross Fine, will remain with the Company on a part-time basis following completion.
Under the terms of the transaction, shareholders in Gross Fine will receive cash of which £625,000 ($889,000) will be deferred and paid in two equal tranches in 2003 and 2004. Gross Fine's commercial property agency division will be sold back to the vendors for £200,000 ($284,500). The transaction will be funded totally by debt provided to Hercules by Barclays Bank.
Gross Fine's profit before tax for the financial year ended 30 April 2001 was £17,641 ($25,094) off a turnover of approximately £3.1 million ($4.41 million).
Commenting on the acquisition, Larry Lipman, Chairman of Hercules said: 'Following this acquisition, we will manage over 40,000 units of residential property in the UK, making us a significant force in the sector. We hope to use this as a platform from which to build a commanding position in the sector over the next few years, delivering strong recurring income and profitability to Hercules.'
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