GEORGE GOULD JOINS MIKE PERO

Mike Pero and George Gould have teamed up to take Mike Pero Mortgages, the country's foremost mortgage broker, to the next level and potentially the public arena.

Mr Pero, the company's founder and Managing Director, announced that Gould Holdings Limited would take a majority shareholding in the company as the mortgage broker moves up to a higher level. Under the new ownership structure Mike Pero and Gould Holdings will each retain long-term shareholdings in the company, which is likely to seek a public listing in the future.

Mike Pero Mortgages processes more than $100 million of loans a month to homebuyers around New Zealand. To date the company has arranged an estimated 50,000 home loans with values totalling in excess of $5 billion.

The business runs on a franchise model, with 35 brokers operating throughout the country as franchise holders working under the Mike Pero Mortgages master franchise. Last year the company was presented with the Supreme Franchise Award by the Franchise Association of New Zealand. It is a profitable business with real prospects for further growth.

It will be business as usual under the new ownership structure, Mr Gould says. No staff positions are affected, nor are franchise arrangements or arrangements with the banks that the company services.

Mike Pero Mortgages was not on the market and the deal only evolved when Gould and Pero were introduced by Ernst & Young. A deal was settled last Friday with franchise holders in Auckland, Wellington and Christchurch being advised of the changed ownership structure at meetings today (March 10).

Mr Pero and Mr Gould, who are both well-known Christchurch businessmen, share a vision for Mike Pero Mortgages.

While it was only late last year that Mike Pero took 100% ownership from South Canterbury Finance Limited, he is the first to admit that "you never know what tomorrow will bring - this opportunity was too good to turn away and with a track record like George's we expect to realise our objectives far sooner".

Mr Gould is chairman and through Gould Holdings, a major investor in two listed companies, Designer Textiles Limited and Vertex Group Holdings Limited.

"Mike Pero is an absolutely remarkable businessman. He created what has become an outstanding business. In fact it is one of the best I have seen," Mr Gould says.

"We think it will sit very well in the public arena giving all customers, franchise owners and staff the opportunity to participate in the company's future progress."

Mr Pero said the future was exciting for the company. "Mike Pero Mortgages is ready to be taken to a higher level and we believe George Gould and Gould Holdings are the right partners to do this."

George Gould and Kevin Arscott, Chief Financial Officer of Gould Holdings, have joined the board of Mike Pero Mortgages which also includes existing Directors, Mike Pero and Humphry Rolleston. A new chief executive will be appointed.

Mike Pero has also entered a long-term sales and marketing contract with Mike Pero Mortgages, with the aim being for the company to continue to build its public profile and brand.

"The business is very dear to me and I want to see it continue to succeed in the future. The new structure will allow me to focus on my favourite part of the business, which is marketing, and not get bogged down with general company management," Mr Pero said.