How do you value a share in an estate agency (what is known in the US as a realtor)? Perhaps as a derivative of a leveraged investment in a highly cyclical market – in other words, with extreme caution.
London investors are getting a chance to use their own methods, with the initial public offering of Foxtons, the chain of London estate agents that was bought by BC Partners for £360m in 2007 at the peak of the UK property boom. It later went through a debt restructuring as the market sagged. Read more