Colliers International’s acquisition of Hatton Real Estate is its third niche agency purchase in the past two years and comes after more than six months of negotiations.
The Toronto-listed global adviser has been seeking to strengthen its London business following the acquisition, in the summer of 2014, of West End specialist H2SO, which has a strong City team.
Although Hatton – set up by former Richard Susskind agents Shaun Simons, 32, Ricky Blair, 31 and Michael Raibin, 34, in 2010 – is a fringe specialist, it will add significant capacity to Colliers’ 35-strong London offices business.
Hatton currently employs 11 people, with Elliot Stern and Richard Silver joining the three founders as equity partners last year and Matthew Cobb an equity partner in Hatton’s residential business.
The purchase price of the deal was not disclosed but Hatton turned over slightly in excess of £6m in the 2015 calendar year.
Colliers International UK and Ireland chief executive Tony Horrell said: “The people are the most important part of this deal. We have liked them since the beginning and now feel it is the right time to bring everyone together. It further strengthens our own London footprint as well as enabling both of our existing London office teams to work together and leverage on each other.”
The acquisition will not, however, give Colliers the capacity it still lacks in the City core market.
“We certainly won’t stop here,” Horrell added. “We will carry on growing organically and through acquisitions in other parts of London as opportunities arise. The intention is to build some more strength in the City core.”
Colliers’ current City office, which employs fee earners in several service lines, will remain open alongside the new City fringe office.
A key consideration for global agencies in acquiring niche firms is the ability to lock in key staff for as long as possible, one that is particularly the case with a team as young as Hatton.
Horrell declined to comment on the length of the lock-ins agreed but confirmed it was “multi-year”.
He said: “They are here for their careers, this is a long-term relationship.”
The Hatton team will move into its new office at Derwent London’s Moorlands, EC1, as planned later this year from where it will operate as a distinct City fringe office.
However, in contrast to some of Colliers’ global competitors, the team will not operate under a distinct brand designed to appeal to tech and creative occupiers but will trade as Colliers International despite having built a strong reputation as experts in their markets.
Hatton advised on close to 1m sq ft of lettings last year as the City fringe boomed, and nearly 100 investment deals.
Shaun Simons, who together with the other Hatton partners will become a director at Colliers International, played down questions about how Hatton would maintain its credibility in the eyes of its clients once it becomes part of a global firm.
“Property is a people business,” he said. “It is all about authenticity and the City fringe is not just an area we work in, it is an area we grew up in and an area we understand.”
“We don’t want to change them, we think they are outstanding,” Horrell added. “We are not the sort of organisation that says you must do it our way. We have bought them because they are entrepreneurial.”
As well as becoming a market leader in the City fringe office market, Hatton has established a residential business under Matthew Cobb.
While Cobb will remain based with the rest of the Hatton team, he will work with Colliers’ existing 18-strong residential business, which is advising on the sale of homes across 25 schemes.
