Harcourts Grenadier takes 50pc stake

A Christchurch real estate franchise has taken a 50 per cent stake in a property management company, and has the aim of doubling the size of the management specialists' rental book.

Harcourts Grenadier - the largest Harcourts franchise in Australasia - has taken a half share in the separate business, Harcourts Accommodation Centre, for an undisclosed sum.

Harcourts Grenadier managing director Peter Greene said with Grenadier taking a shareholding in the Accommodation Centre, the independently- owned franchise had formalised a very long-standing partnership. More than 1000 rental properties are being managed by Harcourts Accommodation Centre, which has one of the largest rent rolls in Christchurch.

Greene said in the next two to three years he would like to see the property management company - based at the corner of Bealey Ave and Papanui Rd - managing between 1500 and 2000 properties.

"We just see that more and more people are going to want to have their properties managed by professional people," Greene said.

While Harcourts Grenadier had never before engaged in residential property management, it had maintained a very close relationship with the accommodation centre for a number of years.

Harcourts Grenadier - with a management team that includes chief executive Rob McCormack - would be able to provide a more fully integrated residential real estate service.

The franchise had nine offices in Christchurch and Greymouth, with around 150 sales staff. In the last two years it had developed a commercial property division.

Harcourts Accommodation Centre was founded 19 years ago by mother and son Patricia and Nigel Bowden, who will continue with the business.

"For our existing clients, it will be business as usual. What will make the difference is our ability to grow," Nigel Bowden said.

Greene said there had been a period of consolidation for real estate companies in New Zealand following on from the lower sales of 2008 and early 2009.

By joining forces with the Harcourts Accommodation Centre, the franchise would have a exposure to a long-term client base of property owners.

- © Fairfax NZ News