More mergers likely

Just as in Australia, which now has fewer listed entities controlling larger capital bases, New Zealand property companies and trusts look set to follow the merger and acquisition trail.

Industry sources expect ING Property Trust's purchase of Urbus Properties management to result in a merger of the two entities. However, one listed real estate expert said this week the blending process would be challenging, as ING is a trust and Urbus is a company.

ING, which held its annual meeting in Auckland this week, has $340 million worth of real estate, compared with the slightly larger Urbus with a $405.2 million asset base, made up of 56 retail, industrial and office properties.

ING Property Trust was the result of a takeover last year of Paramount Properties, which itself arose from Colin Reynold's unlisted Symphony Group. ING and Symphony are joint owners of ING Property Trust's management entity.

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