Harman Healy, one of the country’s largest commercial property auctioneers, is to be bought by the Australian-owned international property consultancy Sallmanns for £6.7m.
“We feel that this is a sector in which we ought to be represented,” said Sallmanns (UK)’s MD director Allan Cooper. “Harman Healy have already cornered almost 20% of the commercial auction market and this will give us a dominant position on which to build.”
The price represents the maximum that Sallmanns have undertaken to pay for the firm and is conditional on profit targets being reached by Harman Healy.
“The property auctions market has grown tremendously in the past few years,” said Mr Cooper,” and this already very profitable sector will continue to flourish. Even if the market declines overall we believe this will only result in the percentage of properties being sold by auction increasing.”
In the past 12 years, Harman Healy have seen their auctioneering turnover grow from £368,000 in 1977 to £153m in 1988. But it was the prospect of gaining access to Harman Healy’s 10,000 clients that is believed to have especially interested Sallmanns. HH also have an active management department handling about 500 properties with a rent roll of about £4m pa.
John Barnett and Jonathan Radgick will join Sallmann’s UK board on five-year contracts.
Sallmanns, who are quoted on the Sydney Stock Exchange, made their UK debut in 1987 when they bought the West End firm of Barrington Laurance. Last October, SBL shortened their name to Sallmanns and moved their HQ to Regent Street, SW1.
The decision to buy Harman Healy will be approved by a general meeting of Sallmanns’ shareholders in Melbourne on May 12.
