The private equity backers of London’s biggest estate agency chain are exploring a potential sale valuing it at more than £500m, despite the looming threat of Rachel Reeves’ new “mansion tax”.
Sky News has learnt that Oakley Capital, which acquired a majority stake in Dexters in 2021, is close to hiring investment bankers to evaluate options for monetising its investment in the group.
Dexters boasts numerous offices throughout the capital.
Dexters, which has scores of offices across the capital, including roughly 40 in Central London, was founded in 1993 by Jeff Doble.
The company is now run by chief executive Andy Shepherd and chaired by Justin King, the former J Sainsbury boss who now chairs Allwyn, the National Lottery operator.
Dexters London reported an underlying operating profit of more than £47m for the year ending 30 September 2024, which is the last period for which accounts have been filed at Companies House, an increase from just over £40m in the previous year.
It recorded revenue during the more recent period of nearly £222m, fuelled by acquisitions and a growing market share. Lettings accounted for close to two-thirds of the company’s total revenue.
This weekend, banking sources said that Barclays was being lined up to advise on a potential sale of Dexters, although it was unclear whether it had been formally mandated yet.
The sources added that the process was at a very preliminary stage, with no decisions taken about the timing or structure of any process.
They suggested, however, that a valuation of between £500m and £600m was realistic.
News of the potential sale comes just six weeks after Chancellor Ms Reeves confirmed plans for a tax on homes worth more than £2m, with a recurring levy to be imposed from 2028.
Oakley Capital has backed prominent British businesses, including the hospitality and media group Time Out and Thomas’s London Day Schools, where several members of the royal family have been educated.
It recently announced the purchase of a stake in Athena Racing, the British America’s Cup team led by Sir Ben Ainslie, the decorated Olympian.
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The private equity firm, headed by Peter Dubens, was reported to have invested £130m in Dexters in 2021, providing the company with a war chest to open new offices and make acquisitions.
Since then, it has snapped up rivals, including the London estate agent Marsh & Parsons and LiFE Residential.
Industry sources said that Oakley owned a roughly 60% stake in Dexters.
If it achieved a valuation in excess of £500m from a sale, that would make it worth significantly more than rival Foxtons, which is listed on the London Stock Exchange.
Shares in Foxtons have fallen by more than 15% over the last year, leaving it with a market capitalisation of about £175m.
Estate agency groups have generally had a poor run on the public markets in London, with Countrywide agreeing to a £130m takeover by rival Connells in 2021 following a number of profit warnings.
The prospective sale of Dexters comes during a slowdown in the wider UK housing market, with house prices across the country rising last year by just 0.6%.
London saw a 0.7% rise in the final quarter of the year, according to Nationwide, whose chief economist, Robert Gardner, said: “Despite the softer end to the year, the word that best describes the housing market in 2025 overall is ‘resilient’.”
The appointment of bankers at Dexters comes months after LRG, one of the UK’s biggest estate agency groups, hired Rothschild to explore plans for an £800m sale.
Oakley Capital declined to comment, while Dexters has been contacted for comment.
