Sir Robert stirs syndicators

Sir Robert Jones reckons another of the major property syndicators is planning to amalgamate its funds like Walltus is trying to do at present, however no-one is fessing up to such a move.

Wednesday, August 2nd 2000, 12:00AM

Sir Robert Jones reckons another of the major property syndicators is planning to amalgamate its funds like Walltus is trying to do at present, however no-one is fessing up to such a move.

"I was informed last week that your main syndicating rival intends to follow your pioneering amalgamation route and I am delighted to hear it," Sir Robert Jones says in a letter to Waltus Investments boss John Hodge.

Privately a number of other syndicators say they have considered the option before and in fact reckon Waltus are copying their ideas. None though say they have immediate plans to make such a move.

St Laurence, which is the second biggest syndicator in the market, says it has no plans currently to amalgamate its funds.

"St Laurence does not have any plans to amalgamate any of its funds," managing director Kevin Podmore says. "However, we watch with keen interest as to how the investors will respond (to the Waltus proposal)".

The idea is not alien to St Laurence, as Podmore floated the concept at a Society of Independent Financial Advisers conference in Taupo about a year ago.

Currently most of St Laurence funds, with the notable exception of Wakefield, are performing well.

Dominon Funds Ltd, which does syndicates mainly for Money Managers, has no plans to merge its syndicates.

Director Richard Lynch had no comment to make on the matter.

A month ago Dominion announced it was cutting payouts on some of its funds.

Farmers Mutual Group which has a number of syndicates which generally own big supermarket buildings isn't planning to do anything either.

Grant Uridge says FMG has considered the idea but doesn't need to go down that track as its syndicates are generally performing well.

It seems amalgamating funds is a logical step for most of the syndicates, and ultimately listing the merged entity on the Stock Exchange will follow at some stage to provide investors with liquidity.

However, such a move is unlikely to happen in the current market as property is out of favour at present with investors.

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