In a surprise move, Countrywide has disposed of its licence to operate the UK franchise of Sotheby’s International Realty – just four years into the 25-year deal.
The franchise, together with two offices, has been taken on by a former regional managing director of Your Move.
Countrywide announced the acquisition, for an undisclosed sum, amid much fanfare in March 2010, saying that the agreement would allow it to open high-end Sotheby’s International Realty franchise branches across the UK and Channel Islands.
The firm said at the time it was delighted to have acquired such an iconic brand.
However, just months later, in June 2010, it acquired Hamptons International, an upmarket brand to add to Countrywide’s existing John D Wood.
When Countrywide bought the Sotheby’s International Realty franchise, there was just one branch in the UK – in Mayfair, London.
Today, there are six: Mayfair; Chelsea; Canford Cliffs, Dorset; Cobham, Surrey; Henley-on-Thames, Oxfordshire; and Stratford-upon-Avon, Warwickshire.
Yesterday, a Countrywide spokesperson told Eye that two branches are being sold along with the franchise, while the four others will be kept and rebranded, most probably as Hamptons or John D Wood.
The spokesperson said: “Countrywide plc decided to sell its UK master franchise agreement of Sotheby’s International Realty and two of the branches trading under this brand, being Mayfair and Cobham, following a proactive approach to purchase these branches.
“We have made a strategic decision to only trade with fully owned brands, thereby avoiding restrictions around franchise agreements.
“In addition, the Mayfair and Cobham branch locations are duplicated within our already strong London & Premier offering.
“We are looking to rebrand the other branches that are not being sold to our other strong prime brands including Hamptons International.”
The identity of the new owner of the UK franchise was not disclosed by Countrywide.
However, the new CEO of UK Sotheby’s International Realty is Sam Mitchell, who worked for Foxtons before becoming regional managing director with Your Move – leaving last month.
It is understood that financial backing has come from veteran estate agency entrepreneur Robin Paterson, the former CEO of Hamptons – now owned by Countrywide.
Paterson bought Barnard Marcus in 1987, merged it with the residential business of Cluttons, and led the consortium that acquired Hamptons in 1996. He sold the company to a Hong Kong firm eight years later for £45m.
Comments (2)
There has been an office in Stratford Upon Avon near me for a little while now. But it has struggled to make an impact especially when surrounded by Countrywide's other premium brands nearby. Sotheby's is a super premium brand overseas but has been trading at a lower part of the market because of a lack of stock in the areas it operates.
Knowing what I do of Sam what this space, He is a very determined and focused individual!