Purchase of NZHL complete
- 9th of July 2012
New Zealand Home Loans Ltd, based in Hamilton, is now totally owned by Kiwi Group Holdings Limited, the parent company of Kiwibank. Kiwi Group Holdings bought a 51 per cent shareholding in New Zealand Home Loans in 2006 and has progressively increased its shareholding since then. It has now completed the purchase of the remaining 24 per cent of the shares.
New Zealand Home Loans has a nationwide network of 59 franchises and 190 consultants and accounts for 30 per cent of Kiwibank’s mortgage business. This year the company will write more than $950 million and is expected to make the billion mark in the next financial year.
Neil Richardson, chair of NZHL, said the company will continue to operate as a separate entity and there will be no change to the franchise’s successful business model.
“Kiwibank and New Zealand Home Loans will operate as separate but complementary businesses. Both businesses were founded with the vision of putting New Zealanders into a stronger financial position. It was important for us to remain in 100 per cent New Zealand ownership and keep millions of dollars of mortgage funding in the New Zealand economy, so we’re delighted with this move.
“The buyout further augments the security and stability of New Zealand Home Loans financial position, providing a solid base for its goals to double its turnover by 2017,” Mr Richardson said.
New Zealand Home Loans will continue to operate under its existing management structure from its Hamilton headquarters, with Mr Richardson remaining as chair and Mark Collins as CEO.
New Zealand Home Loans was set up in 1996 by John Erkkila and Murray Ferguson.