In a deal that took nine months to negotiate, Colliers International’s Christchurch franchise also bought Livingstones’ Christchurch agency business and Livingstones bought Colliers International’s New Zealand freehold property management portfolio.
Five Colliers International staff working on the freehold property management portfolio will move across to Livingstones in Auckland and Wellington.
Colliers International’s 30 per cent shareholding covers Livingstones’ property management and valuation business. Evan Harris, Livingstones' property management director, says plans are now underway to grow the company by 50 per cent by 2010.
The property management and valuation arms will operate under the existing Livingstones' brand. Mark Synnott, Colliers International’s managing director says both companies, which have historically referred valuation business to one another, will grow the valuation business to strengthen Colliers International’s nationwide coverage.
In the property management division, Livingstones has 806,000 sq m under management in a $1.5 billion portfolio, while Colliers International has 130,000 sq m under management in a portfolio valued at about $420 million.
“The new relationship cements Livingstones’ dominance as New Zealand’s leading independent property manager,” says Harris.
Synnott says it gives Colliers International the grunt to become a serious property management company, particularly when Australians, the dominant buyers of commercial and retail property in New Zealand, are demanding quality services from the big real estate services companies. Colliers International is the number one real estate services company in Australasia.
Globally, Colliers International has come in at nineteenth in Fortune magazine’s Global Outsourcing 100 Companies list. Colliers moved up from 44th last year and is the top ranked commercial real estate firm on this year’s list, coming in ahead of CBRE at 51 and Jones Lang La Salle at 67.
Synnott says it is pleasing that the company was listed for its depth experience and proven track record.
“Colliers International’s New Zealand business was built off the back of its successful track record in outsourcing, predominantly major property management appointments.
By 1991 the company was the largest commercial office property manager in New Zealand and we built our brokerage and valuation businesses off the back of that,” says Synnott.
“We now want to position ourselves with Livingstones to become the largest valuation and property management business in New Zealand.”
Livingstones was established in 1919 by Captain HG Livingstone. The company pioneered many of Christchurch's large urban developments and became well known for its agency, management and valuation services. In the 1960s and 70s, the company took a key role in creating and developing many major shopping centres in Auckland and Christchurch.
Livingstones is the largest specialist shopping centre manager in New Zealand both in the number of centres managed and on a square metre basis. Victoria Park Market and three other shopping centres in Auckland, five in Wellington, nine in Christchurch and others in Nelson, Hamilton, New Plymouth, Wanganui and Palmerston North are under Livingstones’ management.
Harris says the company had been looking at ways to establish an international link for some time. “Colliers International as one of the biggest property managers globally can pass on best practice and skills.”
“It’s a fantastic opportunity to combine the skills of both companies for the benefit of clients. We are already working together on major retail development opportunities in the North Island,” says Harris.
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