TSB sets up joint estate agency firm

TSB is to give up its estate agency business by setting up a joint company with National & Provincial to run its chain of 133 residential agencies, writes Vivien Goldsmith.

John Wriglesworth, housing analyst at UBS, estimates that N&P is initially paying between pounds 5m and pounds 10m and the final figure, payable in two or three years, will be related to the profitability of the business. 'That is more than half what the business is worth. N&P gets all the upside of cross-selling their products but only half the downside,' he said.

The business made losses of pounds 6m in the year to November 1992.

The nationwide agencies are run under their original names, including Alan de Maid, Aitchisons and Brian Barber Associates.

David O'Brien, N&P's chief executive, said that 'in due course where the opportunity exists, we intend to invite equity participation in the local estate agency groups'.

The news comes just a day after TSB said it was selling Bell Lawrie Wight, the private client stockbroking business, to Brewin Dolphin. It will keep its own name.

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