Humberts has sold its Farleys Management Business to Vincent Tchenguiz’s Peverel Group.
Humberts, the AIM-listed estate agency that is 20%-owned by Vincent Tchenguiz, has sold the management business of Farleys estate agents in South Kensington, London for £424,500 in cash.
Peverel, which is wholly owned by the Consensus Business Group and a substantial shareholder in Humberts, has been treated as a ‘related party’ under AIM rules in the purchase.
A statement said that the directors of Humberts, following guidance from its adviser Panmure Gordon, believed the terms of the transaction ‘fair and reasonable’ in regards to its shareholders.
The proceeds from the sale of Farleys Management will be used to strengthen Humberts ‘working capital position.’
In February Humberts reported a £17m post-tax loss in the year to 30 September 2007 and the axing of a final dividend. It said it had been hit hard by the slowing property market, the credit crunch and introduction of home information packs.
Its turnover last year grew by 135% to £31.9m, but an £18.4m writedown of its acquisitions caused the loss. A loss in the first half of the current financial year to 31 March is also expected.
Farleys Management business reported a turnover of £363,000 and a contribution of £69,000 for the year ended 30 September 2007.