FirstPort and Mainstay have united to form a managing agent controlling more than 275,000 flats – the biggest leasehold block manager in the country.
FirstPort, formerly Peverel, manages 196,000 flats, including Scotland, while Mainstay manages 80,000. The combined new company is now more than twice the size of the nearest competitor.
The vast majority of management contracts to both companies will have been doled out by developers or commercial freehold-owning players, such as Vincent Tchenguiz’s interest – which used to own the company, then Peverel, and which still makes up the majority of FirstPort’s business.
The number of leaseholder-controlled sites managed by either company is absolutely minimal.
Neither of these property insider operators has flourished because of consumer success among leaseholders.
Even though leaseholders have had no say in appointing either of them, both companies piously intone that they are serving their interests in a “consumer-centric service”.
In fact, the only consumers that matter are Mr Tchenguiz, developers and other other punters in residential freehold investments: upset them and either FirstPort or Mainstay would soon be given its marching orders.
It is an unanswered question how Peverel / FirstPort ended owing a portfolio of leases on retirement house managers’ flats after the implosion of the Tchenguiz interests in 2011. This followed the arrest of Vincent and Robert Tchenguiz, on wrong evidence, by the Serious Fraud Office.
Another question raised by the merger is whether it is out of desperation or for love.
Whatever economies of scale there are in property management as practised by commercial freehold-owner focussed management companies, one assumes they have already been made.
So is it desperation? Discuss.
Or may it even be, dare one mention it, a recreation of Erinaceous – the ill-fated mega property management company that went phut in the crash of 2008. Who knows.0
This joyful union surely does require some minimal participation from those subjugated to these “consumer-centric services” whatever their opinions on the matter.
So, leaseholders in FirstPort and Mainstay managed blocks are invited to share their thoughts in the comments section below.
FirstPort and Mainstay join forces in industry leading combination
London, 25 June 2020
FirstPort, the UK’s largest residential property manager, has today announced a transaction which will see it combining with leading property and asset manager, Mainstay Group.
For FirstPort and Mainstay customers, clients, employees, management, and supply partners day-to-day operations will remain unchanged. Completion of the transaction only remains subject to approval by the Financial Conduct Authority.
Last year FirstPort welcomed Equistone Partners Europe as its new majority investors to support its continued growth, investment in a comprehensive digital transformation programme and make further enhancements to its customer service offering.
To date, FirstPort has completed two previous transactions, strengthening its team and service offerings with the acquisitions of Barratt London’s property management company, BRAM, in 2019 and Linden Homes’ property management provider, Pentland Estate Management, in 2017.
For Mainstay Group, 2019 was a significant year with the business achieving record growth, winning appointments on a number of high-profile developments and securing a national, multi-million-pound portfolio.
Nigel Howell, CEO of FirstPort, commented: “We are delighted to be joining forces with Mainstay to deliver the very best property and asset management services for our customers and clients. Mainstay’s achievements and track record are impressive, and we are proud to be welcoming them into the FirstPort group.
“This is a great milestone for both businesses, which will see us learning from each other and working together to continue to drive the highest industry standards and realise new market opportunities.”
Luke Sanders, Group Managing Director of Mainstay, commented: “This is an exciting opportunity for the Mainstay Group to continue to deliver a market-leading service, while benefiting from the skills, expertise and efficiencies available being part of a larger group. I am very much looking forward to working with FirstPort, as the right partner for our next phase of growth and to help build on Mainstay’s achievements and successes to date.”
FirstPort is the UK’s leading full-service residential property manager, caring for more than 196,000 homes in England, Wales and Scotland across 3,900 developments.
With over four decades of experience and 3,200 employees, FirstPort works with developers, investors, freeholders and over 300 Resident Management Companies.
FirstPort is a member of the Association of Residential Managing Agents (ARMA), the Association of Retirement Housing Managers (ARHM), and Property Managers Association Scotland (PMAS). It holds a Five Star Rating from the British Safety Council, has been awarded the British Safety Council’s prestigious Sword of Honour, is an accredited Safe Agent and belongs to The Property Ombudsman. FirstPort holds a Silver Investors in People accreditation and has been named as one of the UK’s Top Employers by the Top Employers’ Institute for the last two consecutive years.
Mainstay Group is an independent residential property and asset management company providing leading services to over 80,000 homes and award-winning commercial facilities management across the UK.
Established in 2000, Mainstay works with many of the top 20 homebuilders, institutional investment funds, landed estates, resident management companies and private investors to maximise value and drive better returns by pioneering a community and people centric, empowered approach to service and innovation.
Mainstay is accredited to ISO9001 and OHSAS18001, is a member of the Association of Residential Managing Agents (ARMA) and is a proud Investor in People.