American real estate firm Berkshire Hathaway HomeServices has set its sights on the London property market, signing up one of the capital’s upmarket agencies as a franchisee.
Berkshire Hathaway is a highly diversified business run by Warren Buffet, 88, the world’s third richest man and a well-known philanthropist.
Family firm Kay & Co will rebrand as Berkshire Hathaway Home Services Kay & Co in November.
The signing marks the second global franchisee of Berkshire Hathaway HomeServices following Rubina Real Estate of Berlin in May.
Kay & Co plans expansion in the prime central London market through acquisitions and joint ventures with other agencies, and the addition of up to ten stand-alone offices over the next decade.
Gino Blefari, president and CEO of the Berkshire Hathaway Home Services network, said: “London has been among our highest priorities as a key centre for international business and an attractive market for global capital looking to invest in property.
“We are thrilled to enter the market with Kay & Co, a brokerage known for exceptional leadership, knowledgeable, tenured agents and relentless client service.
“As important, the company’s core values and growth aspirations match those of our own, steeped in trust, integrity, stability and longevity.”
Kay & Co, founded in 1982 by chairman Samuel Bikhit, will remain independently owned and operated.
It is not known what it will have paid for the franchise, or whether further franchise agreements will be signed in the UK – for example in other cities popular with Americans, such as Edinburgh,
Kay & Co serves London’s upscale Mayfair, Hyde Park, Marylebone, Regent’s Park and West End districts, plus up and coming areas King’s Cross, Bayswater and Paddington.
Bikhit said: “We believe Londoners and our many American clients in the city will embrace the brand and understand its marketing appeal.”
Kay & Co managing director Martin Bikhit said: “We are delighted to enter into this agreement with Berkshire Hathaway HomeServices.
“London is a global hub that attracts people from around the world, and as specialists in the central London property market we are confident that London will remain a desirable choice for many.
“We believe there will be a surge of home-buyer interest in areas across central London, driven by the arrival of global tech giants Apple in Battersea Power Station, Twitter in Soho, Instagram and Snap – the parent company of Snapchat – in Fitzrovia and Google and Facebook in King’s Cross.
“These companies and others have made informed decisions to establish hubs in London. Their employees will need homes in the months and years ahead, and Berkshire Hathaway HomeServices Kay & Co will be ready to help.”
In May, Berkshire Hathaway HomeServices was named by the Wall Street Journal as the second largest real estate brokerage in the US.
It has 1,330 offices and over 45,000 agents.
Buffet got into the real estate business by default in 2000 when Berkshire bought an energy company, MidAmerican, which owned HomeServices.
It has since expanded, including by acquisitions of other brands.
Last year, Berkshire Hathaway reported $220m in profits for its real estate brokerage division, down slightly from $225m in 2016.
The business follows others in tracking across the Atlantic – including Century 21, RE/MAX, Coldwell Banker, Sothebys Realty and Keller Williams.
However, some US property firms have not done as well in the UK as they had hoped, given the entirely different markets, in the same way that UK firms – which include Foxtons – crossing over to the US have failed to make inroads.
That said, the Berkshire Hathaway HomeServices tie-up with Kay & Co does seem much more tightly focused than some other ventures, as it appears specifically to target wealthy American buyers and sellers in London in a post-Brexit environment.
Comments (6)
Why bother coming to a country where charging a fee is like a crime and where the portals encourage pay any way agents and d.i.y agents charging £99 .
When’s the big rightmove strike? Still not heard anything .
Set it up Bless You, I tried about 2 years ago and managed about 2 dozen, at that point i thought blow it!
it amazes me that if i did topple rightmove on my own i stand to gain a few £. The big players who stand to lose millions just ignore what is happening..including onthe market.
I ran out of breath just trying to say it.
Catchy name.
Somebody forgot to tell Berkshire Hathaway they are now open in the UK…according to their website, their presence as a worldwide force covers Berlin. This sounds like some one has bought into an oversell by the Yanks…Warren Buffett name does not guarantee success and there are a lot of franchise models out there at the moment. If Kay & Co believed this was the future, why wait for the doldrums in the London market….I can just imagine their pitches!