Residential factoring firm James Gibb has acquired part of Aberdeen-based commercial property firm FG Burnett.
The value of the deal has not been disclosed.
It sees FG Burnett’s residential factoring division changing hands, taking the number of properties managed by Gibb – which has offices in Aberdeen, Edinburgh, Glasgow (two) and Dundee – to more than 50,000.
This is another statement move as we aim to create genuine competition and differentiation in the market.”
Douglas Weir, CEO, James Gibb.
A spokesman for Gibb said its Aberdeen office now had 19 staff, including one person transferring from FG Burnett, taking Gibb’s total headcount across all five sites to 110.
According to Gibb, which has increased staffing levels by three people to manage the 3,000 extra properties involved in the deal, its new business has grown three-fold in two years.
Gibb itself has tripled the volume of properties under its management in Aberdeen since 2019.
‘Genuine competition’
Douglas Weir, chief executive, Gibb, said: “We have been consolidating the factoring sector in Scotland carefully and this is another statement move as we aim to create genuine competition and differentiation in the market.
“It brings together two significant residential factoring portfolios in the north of Scotland, which can only benefit property owners.
“With a professional central services team assisting local operations, we are well-placed to deliver superb customer service.”
Seller focusing on commercial market
FG Burnett managing director Richard Noble said: “We are pleased to have completed this disposal to James Gibb, leaders in the residential property factoring arena.
“It was important to FG Burnett that the portfolio transferred to a manager of real quality to the benefit of the developments we factored.
“This allows us to focus on growing our commercial property management portfolio together with our other core services including agency, building surveying, valuation and rating, and we are very excited about that prospect.”
The acquisition marks another milestone in the growth of Gibb.
In 2012, when it was acquired by Glasgow-based Strathspey Capital, the business had 4,000 units under management.
The firm is now seeking further opportunities to grow through acquisition, setting its sights on cities in England – such as Birmingham and Manchester.
FG Burnett beefs up property management team with former Army man
Mr Weir added: “This is an exciting time for our industry, where consolidation of existing factoring businesses will lead to improved resources and enhanced technological capabilities.
“We have seen the lettings sector consolidate dramatically and we expect to see factoring go through a similar process of change.”