Neil Woodford bets £7m on unlisted estate agent
Neil Woodford, 1 of Britain’s very best-acknowledged fund managers, has made a £7m investment in on the internet estate agent Purplebricks.com 
Photograph: Jeff Gilbert
Prominent fund manager Neil Woodford is backing online estate agent Purplebricks.com to shake up the estate agent industry, pumping £7m into the unlisted firm by means of his new fund Woodford Equity Cash flow.
Mr Woodford, who has a successful record of backing unlisted firms, mentioned Purplebricks.com posed a “highly disruptive” model which could steal customized from classic estate agents.
The company, which was set-up in April, allows buyers to promote their properties for a fixed charge of £599. In doing so the firm undercuts other estate agents, who charge commission averaging one.8pc. This signifies sellers generally spend in excess of £5,000.
The business also targets landlords, providing a tenant-discovering service for a one-off charge of £199.
“The company has the vision, the technologies and an skilled management staff,” Mr Woodford stated. “Now with the funding at its disposal, I see a considerable chance for the company to lead the market in altering the way we purchase and sell homes.”
“Given that the huge majority of home searches take area on the Web, a enterprise that offers a ‘virtual’ offering with out pricey large street offices can substantially undercut the existing marketplace.” .
Purplebricks was founded by brothers Michael and Kenny Bruce, who ran the estate agent Burchell Edwards prior to its sale to Connells in 2011.
Mr Woodford has been a keen supporter of starter-businesses all through his job. One particular firm that Woodford was an early backer and is nonetheless invested in right now is Circassia, which develops therapies for allergies. The company listed on the stock exchange in March, raising £200m.
Mr Woodford also owns a number of shares that are listed in the junior stock industry in his £2.4bn fund, like 4D Pharma, the pharmaceutical firm, and pallet maker RM2 Worldwide.
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