An alliance between Auckland entrepreneurs Eric Watson and Greg Wilkinson will own and manage properties worth up to $170 million.
Mr Wilkinson has confirmed the deal, after speculation about it in July, saying that it will be finalised early in the new year.
The idea is to combine assets to provide much
larger capital and consolidate interests.
Mr Wilkinson's Axis owns properties worth up to $90 million.
Some $80 million of property assets are owned by Mr Watson and his Cullen Investments-related companies.
This would give a combined capital worth of at least $170 million.
Mr Watson will take a controlling stake in the new company and Mr Wilkinson will hold the balance of shares.
A name has yet to be decided for the enterprise but Mr Wilkinson wants to retain Axis, which he says has brand recognition.
Mr Wilkinson rejected speculation that the new company would be listed on the sharemarket or that he had any relationship to Mr Watson's Eldercare.
He also denied any direct relationship with Mr Watson's Pacific Retail, although he said he would be keen to undertake management work for Pacific Retail because of its large retailer-based property portfolio.
Axis manages properties for other Cullen Investments-related firms - the Advantage Group and the Blue Star Business Solutions group, which includes U-Bix and gen-i (formerly Wang).
"We have saved millions of dollars for Blue Star since we have taken over there," Mr Wilkinson said.
Mr Watson and Mr Wilkinson also worked together to develop the 133-room Sebel Suites hotel at Auckland's Viaduct Basin.
Mr Wilkinson bought six properties from Trans Tasman for $30 million.
He said Axis had already increased the amount of net rental income from this clutch of properties by $800,000.
Four months ago, Axis bought land at Matarangi, on the Coromandel, from business associate Mark Hotchin.
This included development sites, as well as a block of shops and golf course clubrooms.
