SYDNEY, July 1, 2024 – Global property consultancy Knight Frank, in partnership with Bayleys, New Zealand’s largest full-service real estate company, has successfully completed the acquisition of Australian residential real estate group McGrath Limited. The acquisition was finalized through a scheme of arrangement, following necessary shareholder and regulatory approvals.
The scheme became effective on June 17, leading to the suspension of McGrath shares on the ASX the next day. The acquisition was settled on June 27. The new board of McGrath will include founder and CEO John McGrath, Knight Frank Australia CEO James Patterson, Knight Frank Global Head of Residential Rupert Dawes, Bayleys Managing Director Mike Bayley, and Bayleys Finance Director Ken MacRae. John McGrath will continue as CEO and Managing Director, maintaining his 23.3% shareholding in the company.
John McGrath expressed enthusiasm about the partnership, stating, “We are delighted to join forces with Knight Frank and Bayleys. This collaboration provides us and our customers with access to an extensive global network and sophisticated international buyers, essential for competing in the premium market segment. The partnership with Bayleys also taps into the significant movement between Australia and New Zealand, enhancing our real estate offerings.”
Knight Frank and Bayleys have had a strategic relationship since 2018. This acquisition marks a return of McGrath to private ownership after being listed on the ASX since 2015. For Knight Frank, it solidifies their commitment to Australia, making it one of their largest regions outside the UK.
With this acquisition, Knight Frank and McGrath now have 171 offices across Australia, while the combined entity of Knight Frank, Bayleys, and McGrath boasts 276 offices across Australia, New Zealand, and the Pacific Islands. Knight Frank is the largest privately owned real estate agency globally, with over 740 offices in more than 50 markets, and partnerships with major firms like Douglas Elliman in the US and SMTB in Japan.
Will Beardmore-Gray, senior partner and group chair at Knight Frank, highlighted the significance of this venture, noting, “Our ambition is to expand our horizons continually. This partnership gives us a substantial foothold in the Australian residential market. We share a common ethos with McGrath and Bayleys, focused on exceptional client service. We’re confident that our collaboration will enrich the customer experience and broaden our clients’ reach globally.”
Knight Frank Australia CEO James Patterson added, “This acquisition is a significant milestone in our international expansion. It allows us to consolidate our residential footprint globally and create enormous opportunities for McGrath and their customers. Working with John McGrath and his team aligns perfectly with our values and brand positioning.”
Bayleys, which started 50 years ago in Auckland, now spans 105 offices across New Zealand and the Pacific Islands, employing over 2,300 personnel and completing transactions worth over $15 billion annually. Bayleys Managing Director Mike Bayley expressed excitement about the partnership, emphasizing the shared values and significant benefits for both McGrath and Bayleys customers.
“Our collaboration with McGrath and Knight Frank brings unprecedented global reach and the ability to share innovation and systems across Australasia. This will add considerable value to our customers and agents. We are privileged to invest in a company with McGrath’s reputation, which aligns seamlessly with our family values of hard work, professionalism, and trust.”