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
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
"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.